NEWS FLASH

We may not have jet packs yet, but pretty soon plastic will be a thing of the past. At least in our wallets, that is.

The technology that will bring us part of the way there is near-field communications (NFC), an exciting tool that lets devices exchange information with one another when in close proximity. So far, its main use has centered on payments, specifically point of sale terminals at retailers. In fact, you probably have a credit card from your bank with an NFC chip in it.

The next frontier for those little chips is in smartphones. Like wallets, these have become something people carry around with them everywhere they go. More importantly, mobile application stores have warmed users to the idea that the phone can have a direct line of credit with your bank account and some of the same cards you're carrying around.

For nearly a year now, a mix of patent filings and third-party reports have pointed at Apple adding NFC to its devices, specifically the iPhone. But none has managed to offer a clear, well-supported stance of what Apple is really up to. CNET talked to two NFC experts about the current mobile payments landscape, and they spelled out some of the hurdles Apple faces not only in putting NFC chips into devices but also in setting up the infrastructure and partnerships to make it a reality.

Before delving into the nitty-gritty though, it's worth understanding why would Apple would even venture into NFC in the first place. The simple answer is that it's an enormous business opportunity.

"Electronic payments in the U.S., according to the Federal Reserve was $40 trillion in 2010," David Eads, who is the founder and CEO of Mobile Strategy Partners told CNET. "So for every 1 percent of mobile payment adoption that happens of that number, that's $407 billion in transactions."