iPhone 5 Set for Better Transactions with NFC Chips?

(Ping! Zine Web Tech Magazine) – Citing further analysis of data on iPhone 5 prototypes, 9to5Mac.com reported on Monday that the next generation Apple device will feature NFC (Near Field Communication) chips.

So exactly what is NFC? The term itself pertains to a set of standards for smartphones related to how data is securely exchanged, especially in the area of financial transactions.  According to the report, the chips meeting the NFC threshold will plug right into the power management units on the highly-anticipated Apple devices.

The inclusion itself could provide for better integration with an Apple service known as Passbook, recently unveiled as part of iOS 6 during Apple’s annual WWDC conference in San Francisco, California. Passbook allows Apple users to confirm transactions by simply scanning their devices at places such as airports, movies theaters and more.

Meanwhile, NFC standards could soon take over the industry, at least according to one analysis. In a report by ComputerWorld.in, Jim Peters, CTO of telecommunication solutions provider SITA (serving the airline industry) discussed the prospect. “This is going to happen. By the end of the year the majority of smartphones that you go and buy will have NFC on them. If in October the next iPhone comes out and it has NFC on it, it’s game over,” commented Peters in ComputerWorld.in’s report.

Apple is widely expected to unveil the iPhone 5 sometime in the fall. Aside from new hardware, a large visible change is set to hit the device. Many reports point to a larger screen size.