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Apple to use NFC, tokenization in new iPhone and iWatch, according to report

Devices will work in tandem to share tokens to verify payments.

September 8, 2014

With Apple ready to release new mobile devices Tuesday, more news is coming out about what might be included in those products. Bank Innovation reported both the new iPhone and an iWatch will use NFC technology as well as tokenization for mobile payments at the point of sale. 

Both devices will be able to communicate with each other to share tokens, according to Bank Innovation's report. Tokenization uses a one-time code to verify transactions instead of the traditional 16-digit card numbers found on credit and debit cards.