Apple’s launch this week of iOS7 will include a new feature called iBeacon, a location-based service that enables retailers to target shoppers when they enter a store, according to GigaOm.

The new service, which is based on Bluetooth Low Energy (BLE) technology, follows the similar-sounding Beacon service announced by PayPal last week, which also targets the retail market and also uses BLE technology.

With Apple’s iBeacon, retailers can deploy small wireless sensors that send data, such as personalised offers or coupons, to a user’s iPhone over Bluetooth.

PayPal envisages users making payments via its service. Apple’s intention for iBeacon is less clear. The company announced the initiative at WWDC in June but gave no details about it (and said nothing about it during last week’s launch for the iPhone 5S and iPhone 5C). The service is a potential competitor for NFC, said GigaOm.

A vendor called Estimote has launched a demonstration video (see below) for its forthcoming Beacon product (pictured above) which it says is compatible with iBeacon. Its products are designed to be placed around stores and send data to shoppers.