iPhone 5 and iPad 2 to have NFC capability?

Rumours are creeping across the pond that Apple’s soon-to-be-arriving iteration of the iPhone, the imaginatively named iPhone 5, will have NFC capabilities built into the handset. The same goes for the iPad 2, apparently.

For those of you who don’t know what NFC is, it stands for Near-Field Communication, and will be used primarily for paying for stuff with your handset. It’s already commonplace in Japan, and tech analyst Richard Doherty of Envisioneering Group has suggested that people at Apple are already looking at ways of adopting the technology directly into the handset.

The idea behind it is to allow the use of iTunes gift cards and the credit card info that Apple has on your iTunes account in order to process payments, and is also apparently looking at potential reward schemes in order to drag potential customers away from rivals. However, we don’t know if Apple are planning on making the transactions free, or if there will be a hidden cost to the user. It’s still early days, but it’s interesting news.

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