iPhone takes on new role as mobile wallet

By Kim Yoo-chul

The popular iPhone is being transformed into a “mobile wallet” after KT added wireless payments functions to the iPhone 4.

On Monday KT, Korea’s No. 2 mobile carrier, said it has released a new iPhone 4 case incorporating near-field communication (NFC) technology, which the company claims is an industry first.

It allows iPhone customers to pay for public transportation including the subway by passing the devices over an electronic reader, said a KT spokeswoman Kim Yoon-jeong.

``Other functions called `mobile stamps,’ and `Olleh my wallet’ will be included, to help our iPhone users receive more distinctive services.’’

NFC is regarded as critical technology needed to connect the physical and virtual environments.

It offers secure wireless two-way communication between a mobile phone and reception devices such as other mobile phones, payment terminals or identification readers.

The iPhone 4 doesn’t support the NFC payment system, so KT formed an alliance with Canada-based Wireless Dynamics for the NFC-enabled case.

But Apple is mulling the possibility of including a Qualcomm chip supporting wireless payments in its next handset, the iPhone 5, as the company is keen to address concerns from iTunes users who have trusted it with their credit card details.

``More smartphones will use NFC as a new connectivity option, similar to the way GPS, Bluetooth and Wi-Fi were added to smartphones in the past because NFC-customized applications are increasing,’’ said Kim.

KT has sold over 2.7 million iPhones since they were released in South Korea, while its biggest local rival SK Telecom has sold some 450,000 as it has only recently offered the device.

But Kim wouldn’t say whether the latest iPhone will adopt the NFC functionality, citing the sensitivity of the issue. Qualcomm officials in Korea also declined to comment about the matter, similarly followed by Apple’s local representative Steve Park.