WWDC is only a few days away and rumors argue that iWallet will be one the expected features. iWallet is known to be a digital platform that allows to user to have complete control over the subsidiary financial accounts straight on their iPhone device and bond with the NFC technology to accomplish credit card transactions on the phone. We stated in a previous article that Apple wins patent for iWallet and now it seems that more patents are granted to Apple in what concerns the iWallet technology also coming with security methods for resting assured that financial information are safe and sound.
Rumors state that this outstanding payment solution will rock on the next generation of iPhone, namely iPhone 5. Apple highlights the fact that it would definitely be highly secure and reliable:
Credit card transactions happen all the time, whether or not the cardholder is present. There’s a lesser chance of fraud when the cardholder is present, but unfortunately, the cardholder can’t be present all the time. Apple’s solution, the iWallet, aims to provide real-time authorization for transactions where the cardholder is not present, or remote. However, unlike transactions over the Internet, Apple promises its service to be highly secure and reliable.
Some would say that they possess a wallet or a credit card, so why would they want to complicate their life. iWallet is going to chuckle over success, maybe not now, but in a few years it would be accepted by more people. It’s the case of iPhones; they traded old music players and gaming devices for fancy gadgets that work even better.
When it comes to Cardholder-Not-Present Transactions (online transactions or via telephone, when you don’t show a physical card to the vendor) Apple has come with the solution for avoiding frauds. iWallet practically delivers real-time authorization of cardholder not-present-transactions. The electronic device does not necessary need to be an iPhone; it could be very well an iPod touch, a Mac or MacBook Pro.
Regardless of the form the electronic device takes, the device may run an application enabling a cardholder to approve or decline cardholder-not-present transactions in real time, near real-time, or after the transaction is initially authorized or settled. That is, in addition to a card transaction being sent to an issuing bank for approval, details of the transaction may be sent to the cardholder for approval before the transaction is authorized. If the cardholder doesn’t recognize the transaction, it may be declined immediately, thereby preventing the cardholder and the merchant from becoming victims of identity theft.
Source: Patently Apple