NEW YORK: Apple Inc plans to turn its next iPhone into a mobile wallet through a partnership with major payment networks, banks and retailers, according to a person familiar with the situation.
The agreement includes Visa Inc, MasterCard Inc and American Express Co, and will be unveiled next Tuesday along with the next iPhone, said the person.
The new iPhone will make mobile payment easier by including a near-field communication chip for the first time, the person said.
That advancement along with Touch ID, a fingerprint recognition reader that debuted on the most recent iPhone, will allow consumers to securely pay for items in a store with the touch of a finger.
While companies such as Google Inc have invested in creating ways for phones to make payments in a physical store, the United States retailers have been slow to adopt the technology, thus limiting the use by shoppers, according to Ben Bajarin, an analyst for Creative Strategies LLC in San Jose, California.
“That could change with Apple entering the market because iPhones have the largest market share in the United States. Love it or hate it, Apple drives a lot of standards in the industry,” he said. Bloomberg