Mar 14, 2011 06:29 GMT  ·  By

iPhone 5 will not have built-in Near Field Communication (NFC) according to people familiar with Apple’s plans cited by the Independent, but the Mac maker is working on a way to introduce a “wave and pay” system in 2012, be it something similar to NFC.

The reason why Apple reportedly decided to scrap NFC in iPhone 5 is the “lack of a clear standard across the industry,” according to the source alleging that a 2012 implementation of something similar to NFC is more likely for Apple.

Near field communication is a set of short-range wireless technologies that typically require a distance of 4 cm or less.

The standard operates at 13.56 MHz and at rates ranging from 106 kbit/s to 848 kbit/s. It involves an initiator and a target, where the iPhone would be the initiator, actively generating an RF field that can power a passive target.

The target, for its part, can be anything from a sticker to a card.

The Cupertino-based tech giant has long been rumored to plan the implementation of NFC in its second-generation tablet devices, as well as the iPhone 5.

iPad 2 boasts no such capabilities, and it appears that the iPhone 5 will follow in on its footsteps.

However, the Independent cautions that this doesn’t necessarily mean Apple is not working on its own NFC proposition.

In fact, the company is heavily rumored to be planning the introduction of such a service around 2012.

The iTunes billing system is said to be at the heart of the technology, allowing Apple to process all kinds of payments through a platform that requires a single Apple ID and a password.

To implement NFC, Apple not only has to make software arrangements, but also needs to throw in new chips in the iPads and iPhones to come.

For such big plans, the company behind the Mac OS X operating system needs a clear image of what will work as a “wave and pay” system, and what will not.