Why iPhone5 matters

It would be rude of us not to look at the iPhone 5 launch this week wouldn’t it? The over-riding message from analysts, commentators and other hacks out there is that “there are no surprises” with the new iPhone. But I disagree. I think that there is one stunning surprise in iPhone 5 that has huge repercussions for the mobile industry and the wider m-commerce world.

No, its not the slightly larger screen, the extra row of apps, the tiny-bit-better camera, the two tone metal case, the 30% increase in size nor the 20% reduction in weight. Its not even the faster processor, the high res screen not the improved battery life.

No. It's the lack of NFC. Everyone was expecting the device to ship with NFC capability built in and, lo, we would see the NFC payments and NFC marketing markets take off.

But Apple’s decision not to include the technology speaks volumes about the long term prospects for NFC – and hints at how Apple sees mobile payments working in the coming months and years.

Mobile payments is certainly flavour of the month. This year’s Meffy Awards, doled out this week, featured a growing number of mobile payments categories and winners. Barclays pingit walked off with an awards and the Outstanding Contribution Award 2012 was given to Hannes Van Rensburg, CEO Fundamo, for his pioneering work acknowledged as paving the way for mobile banking in developing countries.

And this really showcases why Apple, perhaps, hasn’t included NFC in iPhone 5: there is no need. Millions of Africans, Indians, Pakistanis and other ‘developing’ countries’ comsumers are already doing mobile payments, ticketing, loyalty and so on – all with text and feature phones. There is no need for NFC.

In fact, NFC is a red herring. The challenge with mobile payments is how to make it simple, secure, yet ubiquitous and above all service the consumers’ needs, not those of the banks, operators, third parties, merchants or device makers.

Anyone who has signed up to O2 Wallet will realise just how complicated it is. With Project Oscar also on the starting blocks, along with Google Wallet, initiatives from banks and card companies, the market is so overly complex it will never fly.

What will drive mobile payments will be a simple app or text service – for iPhone users, probably based around iOS6’s Passbook app, which is not iPhone 5-specific – and will make payments simple to do and to manage.

This, of course will be the main thrust of one of the main sessions at the WORLD TELEMEDIA MARBELLA on 17 to 19 October, with panellists from mopay, ImpulsePay, and others on hand to discuss and debate quite how it is all going to work – and whether we need less technology and more common sense to make mobile payments fly.

Maybe, Apple’s omission of NFC is the common sense injection the hysterical world of mobile money and mobile payments really needs?