According to a report published by Bloomberg, Apple will be equipping iPad 2 and iPhone 5 with NFC chip with an intention to let its proud owners use iDevice as a debit cards.
NFC which stands for Near-Field Communication is a technology which is operable within a distance range of 4 inches and requires an NFC tag on the item with which the transaction is to be performed.
This information comes via Richard Doherty, director of consulting firm Envisioneering Group citing engineers responsible for designing the hardware of the next iteration of iPad and iPhone. By doing this, Apple will be cutting their own cost:
The main goal for Apple would be to get a piece of the $6.2 trillion Americans spend each year on goods and services, Crone said. Today, the company pays credit-card processing fees on every purchase from iTunes. By encouraging consumers to use cheaper methods — such as tapping their bank accounts directly, which is how many purchases are made via PayPal — Apple could cut its own costs and those of retailers selling Apple products.
The other obvious purpose behind this move is to compete with Android powered smartphones. Speaking of Android phones, Nexus S, Google’s Gingerbread flagship device already has a functional NFC chip inside it.