Apple will be adding NFC (near field communications) hardware in the upcoming iPhone 5 and iPad 2.The information has been leaked from the hardware manufacturers and according to them the company has been asked by Apple to produce the hardware, with an order of ten million units placed for the new iPhone handset.

The services are based on “Near-Field Communication,” a technology that can beam and receive information at a distance of up to 4 inches, due to be embedded in the next iteration of the iPhone for AT&T Inc. and the iPad 2, Doherty said. Both products are likely to be introduced this year, he said, citing engineers who are working on hardware for the Apple project.

Bloomberg cites another expert that believes Apple may choose to tap into information already on file from customers using its other services, like iTunes. There’s also talk of a loyalty system that would allow customers to earn points and rewards for payments made with their phones.

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