Major card companies are signed on for Apple’s iPhone 6 payments solution

The iPhone 6 is widely expected to include an NFC chip that will enable mobile payments on the device, a move Apple is finally ready for. In addition to leaks that seem to prove the iPhone 6’s hardware will support wireless payments, fresh reports from Bloomberg and Re/code indicate that Apple has recruited the three major credit card providers to back its iPhone wallet plans.

Bloomberg has learned from a person familiar with the matter that Apple has inked deals with Visa, MasterCard and American Express, which will be confirmed during the iPhone 6’s September 9th media event. Re/code also confirms that at least American Express is on board.

Apple has long been rumored to be toying with the idea of adding NFC chips to its iPhones, but the company has refrained from doing so in previous years. Meanwhile, various Apple patents describing ways of securely processing mobile payments have surfaced, proving that the iPhone maker is definitely interested in this particular business.

The company has more than 800 million iTunes accounts on file complete with payment information, which are used to purchase only Apple products from its stores. By adding NFC support to the iPhone 6 and reaching agreements with major credit card companies, Apple may let users wirelessly pay for goods in other stores, as long as those retailers use POS systems that support mobile payments.

Furthermore, Apple’s Touch ID fingerprint sensor, expected to be found on board all 2014 iOS devices including the NFC-enabled iPhone 6 models, is expected to play a major role in securing the user’s financial details related to mobile payments.

While NFC payments aren’t new to smartphone owners, as Android users have offered the feature for quite a while, Apple is expected to help them take off by adding support to its popular iPhone lineup, and that’s despite the fact Apple isn’t the dominant smartphone maker by market share.

SOURCE:

BLOOMBERG