The patent may have been filed in 2008, but this is the first time that we have had a chance to see it. More than a year ago, Apple filed for a patent concerning mobile payments using your iPhone and has dubbed it ‘Transaction.’
PatentlyApple has taken the time to strip the patent to the bone. If you want an excruciatingly slow walk through the patent, head here. Fanboys only, patents are wildly dry stuff. If you would like an overview of what the patent can do, stay put.
In short, the patent allows peer to peer payments between iPhones and other Apple devices such as iMacs. This makes sense, those are the devices that Apple manufactures. The iPad is not mentioned as far as we could see, not because it won’t be included, but due to this patent being filed long before the iPad’s debut. The iPhone is the device most often used in the diagrams.
The patent allows for several ways to collect payment information for processing, either through near field communication or a camera. The device will be able to store payment information in between uses. On the iPhone (iPad, etc), a full suite of capabilities are available including acquiring payment authorization, meaning that from the device, a full complete payment can be processed.
Apple has crafted (on paper at least) an application for Transaction that lets parties split bills up for individuals to pay their own share. Quite the useful app if you are stuck with five people in a restaurant and no cash.
All together, this is a consumer facing method to pay for things on your phone by credit card or check. Nothing that shocking, to be frank.
Will Apple Actually Release This?
The patent could be a front, set up to block other people from doing something similar. Or, it could be that Apple actually intends to build this and is bent on releasing it in short order, perhaps at this year’s WWDC.
However, there has been news and rumor that Apple already had partners in place to work out payment via your iPhone. Those article focused on waving your phone near a terminal to release funds, something that is already popular in asian countries.
What About Square?
Square, the nifty mobile payment method that works with iPhone and iPad launched just yesterday. The day after, we find the patent that Apple has had under wraps for two years? Sound suspicious if you ask us. Apple is the king of PR and could have planned this.
Either way, the Square is out now and Transaction is not. Personally, given how simple Square looks to use, I must say that I would prefer it over what Apple has concocted, at least from a “on paper” perspective.
Would you rather use Square or Transaction?
Square looks great but here in the UK us Merchants are only insured against fraud when the transaction has been verified by a Chip&Pin enabled card reader. I emailed Square, who were obviously aware of this game-breaking limitation to their widget, but said that it would take a complete redesign to turn it into a Chip&Pin reader.
Thanks for the info. I was just about to get in touch with them too.
Now that that information is out I guess someone in the UK or EU will create a chip & Pin version of Square and compete with Square.
Patently Apple does an excellent job at laying out the patent with a ton of great illustrations. I have no idea why you feel the need to tell people not to visit the original work and report. Your inspiration stems from the original report. Barring that, only Apple could pull off such a difficult leap into finances and make it easy enough for all of us to use it.
Square is using old technology (credit cards) with new technology (iPhones) while this system from Apple seems to use just new technology (iMacs, iPhones and iPads). I’d prefer the new technology.
Older tech often has a lower error rate, and given that this involves my money I must side with the safer ( and still awesome ) Square.
I wrote this as I had a different perspective than did Patently Apple, and wanted to bring a short version of an important news item to our readers. They like it.
And your second point is wrong, Square already did.
I don’t want to sound like an anti-Apple lobbyist, but the fact that Transaction only works with Apple products is very sad is you ask me. I think Apple is cutting itself there. Yes Apple has always gotten away with being so closed, but for payments? Really?
Also the fact that square is already launched, although not worldwide, and has an android app (I personally have an HTC Desire) makes my choice to be square.
I wonder if a square payment counts as pin though, because that can cost a lot for some creditcards like my Rabocard.