Apple Point-of-Sale Upgrade Signals Better Security, NFC Access
forbes.com
Apple is taking a pre-emptive strike against the low security that magnetic-stripe credit cards provide by deploying an iPhone 5s shell made by VeriFone Systems Inc., one of the world’s leading POS vendors. The new device is about one ounce heavier and slightly thicker than the previous device marketed by Infinite Peripherals Inc., but it incorporates all the features that Apple stores will need to be secure and efficient over the next few years.
First, the device accepts chip-and-pin (EMV) cards, which offer the current maximum level of account security. The technology has been widely used in Europe for many years, but U.S. credit card issuers have been reluctant to adopt it because of the increased per-card cost. However, by October 2015 MasterCard and Visa will change their liability regulations, forcing most merchants and banks to begin using chip-and-pin. If a fraudulent transaction occurs, whoever has the less secure technology will be liable for the purchase. The new rules will likely force wide adoption of chip-and-pin cards and readers in the U.S. prior to the deadline.
Using this advanced system, buyers hand over their card to a clerk—or insert it into a reader themselves—and then enter a personal identification number (PIN). The VeriFone POS device destined for the Apple stores has a PIN entry keypad on the back of the device. Entering a PIN provides an exponential level of improved security, especially if the card is lost or stolen.
The VeriFone POS device can also continue to accept chip-and-signature cards after the 2015 deadline. It includes a laser barcode scanner for both 1D and 2D codes. Apple has upgraded its propriety POS software to take advantage of the iPhone 5s and VeriFone shell features. No one has yet described how store employees might use the new ability to make voice calls with the iPhone 5s, compared to the iPod touch that was previously used for POS.
The most intriguing feature of the VeriFone shell is one that’s basically invisible—Near Field Communications (NFC). VeriFone has provided a spot on the shell, just above the PIN pad, where an NFC-equipped smartphone might be tapped to exchange information with the EasyPay device. Speculation has been rampant for years that Apple would incorporate NFC into an iPhone model, primarily as part of their overall financial payment strategy. That strategy includes maximizing the benefit of having over 800 million iTunes accounts, the majority linked to credit cards. However, NFC can also be used for sharing photos, documents and other data, something most other smartphones can already do. |
