Your Apple Inc. (NASDAQ:AAPL) iPhone has the potential to open doors for you, quite literally, in the near future say experts. The latest devices from the iPhone manufacturer come equipped with a Near Field Communication (NFC) chip that allows its users to make payments through Apple Pay at physical stores with a mere wave of their devices. But experts believe that the mobile payment technology has a wide range of functionalities, including unlocking doors at hotel rooms, just waiting to be explored.

Apple Inc. (NASDAQ:AAPL)’s NFC chip similar to ones used in transit payment systems

Apple Pay was introduced as a mobile payment platform with tie-ups with several banks and credit card companies. By partnering with multiple retailers such as Macy’s, Inc. (NYSE:M), McDonald’s Corporation (NYSE:MCD), Walgreen Company (NYSE:WAG), Whole Foods Market, Inc. (NASDAQ:WFM) to name a few, Apple Inc. (NASDAQ:AAPL) offers its iPhone 6 and iWatch users the option to pay at their physical stores using their mobile devices.

The NFC chip which makes this technology work for Apple Inc. (NASDAQ:AAPL) is provided by NXP Semiconductors NV (NASDAQ:NXPI). Incidentally, a similar chip is used in the payment cards used in several transit systems across the world.

When used in conjunction with a tool which ascertains the user’s identity, such as the Touch ID fingerprint reader, this technology can be used for anything from renting a book or a car to providing an alternative for keys.

Apple Pay competes against PayPal and Google Wallet

Apple Inc. (NASDAQ:AAPL) Pay was viewed as a direct rival to eBay Inc (NASDAQ:EBAY)’s PayPal payment system. It was claimed to be much more secure than traditional credit cards. It was also said to provide better features when compared to the similar offering from Google Inc (NASDAQ:GOOGL), the Google Wallet. It currently offers support for both credit and debit cards from three of the major payment networks, namely, Visa, MasterCard and American Express.

Retailers wishing to employ NFC payment support have to install NFC terminals, which cost over $150, at their outlets.