Well, iPhone 5 release date is said to be in year 2012, though the exact release date is not yet known. And as far as features are concerned, since the release of iPhone 4S there have been demands for improvements in the upcoming iPhone 5.
Image Credit: Macrumors.com Previous “iPhone 5″ mockup based on leaked case designs
Innovations in the Near field technology or the NFC would lead to the transformation of the iPhone 5 to a digital wallet. The NFC is known to provide communication through transactions, data transfer and wireless connections between devices, enabling the customer to use it with his own iTunes account.
This technology is already being used in many handsets like those of Samsung, Nokia, Rim, etc to send encrypted data to a short distance. Credit card holders having NFC facility in their smartphones can pay for purchases by waving their smartphones near or tapping them on the reader, without actually using their credit cards.
Earlier this technology was reported to have been unsuitable for Apple smartphones but sources revealed that it would be available in the 2012 handsets like the iPhone 5. With the rising popularity of the NFC, Apple would definitely lag behind in implementing it in its devices.
The iTunes accounts in Apples database, is quite large with millions of credit card details. Therefore, there is the need of the NFC technology to convert it into an e-Wallet application for iOS.