Although I hav no knowledge on the matter, why is there an assumption that this means the iPhone 5 won't have NFC? I'd imagine if Apple were to introduce NFC it would do so by bringing on board a few large retailers who would support it and get key recognition at the iPhone 5 event. Square would still serve a role with smaller businesses and for person to person transactions for a while I'd imagine, on top of which one would assume that square would eventually rely on NFC as well and drop the attachment. Or maybe Apple would buy them outright - hence the reason to establish this relationship now.