Apple Inc. (NASDAQ:AAPL)’s newly launched payment system, Apple Pay, comes at the right time for the iPhone maker and the Near Field Communication (NFC) and payments industries, Mark Hung told CNBC in a recent interview.
According to the Gartner wireless industry research vice president, Apple Inc. (NASDAQ:AAPL) is not particularly known to be on the bleeding edge of technology all the time. However, he said that once the company does adapt technologies such as it did with NFC which is expected to have been incorporated into the iPhone primarily for Apple Pay, people can be certain that these technologies are validated by the move.
“With Apple finally putting NFC into the iPhone, we expect the growth rate to accelerate going forward for NFC,” Hung said.
The Gartner executive said that Apple Inc. (NASDAQ:AAPL) integrating NFC into their ecosystem also means a boom for chipmakers. Furthermore, he noted that while the industry has been growing steadily since Google and manufacturers incorporated NFC into the Android platform, this move from the iPhone-maker means NFC is saved from petering out given that there has been a lack of a killer app for the technology.
Hung said that NFC along with another technology called Secure Element really provides the most secure way that’s available today. He said at a later part of the interview that the iPhone-maker is expected to generate revenue from Apple Pay using NFC technology but merchants and payment processing companies need not worry about the lost revenue from Apple’s cut because the business the company will generate will make up for this loss.
Meanwhile, Apple Inc. (NASDAQ:AAPL) will need to safeguard its system against hackers, Hung said. Nonetheless, the analyst said that the way the company has adapted NFC along with Secure Element and other technologies provides the most secure digital payment system available today.
Carl Icahn’s Icahn Capital Lp is an Apple Inc. (NASDAQ:AAPL) investor. The large hedge fund reported a stake of about 52.76 million shares in the consumer electronics giant by the end of the second quarter.