Near Field Communications reports (via 9 to 5 mac) that Apple is rumored to be testing a prototype of its next-generation iPhone equipped with a radio-frequency identification (RFID) chip. The rumor comes from a “highly reliable source” who provided the information to Einar Rosenberg, Chief Technology Officer of Narian Technologies. Rosenberg writes:

Had to share this news. A highly reliable source has informed me that Apple has built some prototypes of the next gen iPhone with an RFID reader built in and they have seen it in action. So its not full NFC but its a start for real service discovery and I’m told that the reaction was very positive that we can expect this in the next gen iPhone.

Apple has filed several patent applications related to RFID, which uses low-power radio waves to allow devices to interact over short ranges. The technology is currently being used in a number of settings, including electronic vehicle toll and mass transit system fare collection and contactless credit card transaction implementations.

From: MacRumors