Apple has begun testing prototype iPhones with built-in RFID readers, according to a rumor reported on softpedia.com. The rumor is based on several recent patents filed by Apple regarding an RFID-enabled application called “ID App,” which uses an RFID sensor to read tags as well as sense and connect to WiFi networks.

According to a report by Apple, an RFID antenna can be placed right in the touch sensor panel of an iPhone, allowing it to function as an RFID transponder. The site stated the technology was RFID, but it may also be near field communication.

Equipping an iPhone with RFID would open the door for thousands of new features, including contactless payment. By next year iPhone owners could be paying for virtually anything with a simple wave of their phone.

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