What Does Apple’s POS Update Bode for NFC and the iPhone 6?

Apple is reportedly updating the point-of-service device its store employees use to allow them to process payments with the iPhone 5S, rather than just the iPod Touch.

To some, this is a sign that Apple will add near-field communication (NFC) capabilities to its upcoming iPhone 6. This is a questionable conclusion.

In 2009, Apple started using an iPod Touch to facilitate VeriFone’s EasyPay point-of-sale system in Apple Stores. The EasyPay system uses a VeriFone-made POS attachment (seen here) that connects to the iPod Touch. The POS attachment gives employees a mobile magnetic stripe reader and barcode scanner and also has a number of other features, as well.

According to 9to5Mac, Apple has decided to ditch the iPod Touch for in-store payments in favor of the iPhone 5S, the Cupertino, Calif.-based company’s flagship phone. There does not appear to be a concrete reason why Apple is switching to the iPhone 5S, but it is not surprising. The iPhone 5S comes with a built-in fingerprint scanner for added security, which would be useful for Apple Store employees. Not only that, but the device is an actual phone as opposed to the iPod Touch, which is mainly an enhanced music player, so employees will be able to use the device to send and receive phone calls.

The key to the upgrade is that it will work with an updated POS accessory, also by VeriFone. The new accessory that has RFID capability, which is similar to NFC, can read chip-and-PIN cards, improve Passbook scanning, includes a keypad for PIN numbers, and is built for iOS 7 – Apple’s current iteration of its mobile operating system, iOS.

Many see the move to the iPhone 5S as an indicator that Apple is planning to add NFC connectivity to the iPhone 6. The logic goes like this: VeriFone’s accessory works with NFC. Presumably, Apple wants its store employees to be adroit with the VeriFone accessory, so that when the iPhone 6 comes out with NFC, store employees will be familiar with the technology. Even Forbes wrote that this development means NFC is in the iPhone 6.

But NFC is a hardware addition, not a software one. In fact, there is no NFC in the iPhone 5S. Period. So there’s no “training” here.

Apple might be upgrading to the iPhone 5S, because of Apple’s iBeacon technology newly incorporated into iOS 7, which works well on the iPhone 5S — as compared to any other iOS device, including the iPod Touch — thanks to its extremely powerful A7 chip. IBeacon uses Bluetooth Low Energy (BLE) connectivity to notify customers about retail deals and discounts. The feature could be useful for Apple Store employees to potentially increase sales for accessories by reminding employees of discounts and related products via push notifications.

Apple’s decision to upgrade Apple Store employees to the iPhone 5S has a number of implications that could make shopping in Apple Stores easier and more efficient for both employees and customers. However, more importantly, the advanced security features in the iPhone 5S make it a better device for mobile transactions. Apple is expected to start using them in stores soon.