Leaked images purporting to show a near-field communication chip embedded in the logic board of an iPhone 6 are being backed up by insiders claiming Apple is teaming up with American Express, MasterCard and Visa to set up a new mobile payments system for Apple mobile devices.
The NFC chip would enable users of iPhone 6s to exchange data with point-of-sale systems without having to stand in line for the chance to slide a piece of magnetized plastic through a reader.
The virtual wallet will be protected by fingerprint scanners, which were implemented in the iPhone 5, according to a report from one of the insiders. PayPal and Google have already made attempts to establish their payment systems in brick and mortar stores, but the partnership with three of the world's largest financial institutions gives Apple the inroads needed for its mobile payment system to take hold in a short time.
With approximately 800 million iTunes accounts already connected to major credit and debit cards, Apple already has the infrastructure in place to launch a virtual wallet.
Richard Crone, CEO of Crone Consulting LLC, estimates that Apple's mobile payments platform could generate roughly $300 million each year from advertising, though retailer adoption will be the key to the service's success.
"There's huge potential with Apple having a market-defining opportunity," said Crone. However, "there's lots of moving parts in payment that make the deals they did with artists and Hollywood for iTunes look like child's play."
Around the time Apple filed a patent for mobile payments tech, in January 2014, Apple CEO Tim Cook told investors that the tech firm's fingerprint system was motivated by a desire to facilitate mobile purchases from Apple products.
"[In general], we're seeing that people love being able to buy content, whether it's music or movies or books, from their iPhone, using Touch ID," Cook said. "It's incredibly simple and easy and elegant. And it's clear that there's a lot of opportunity there. The mobile payments area in general is one that we've been intrigued with and that was one of the thoughts behind the Touch ID. But we're not limiting ourselves just to that."
Apple is widely expected to launch its next smartphone, the iPhone 6, at a press event in Cupertino on Sept. 9. Insiders claim the NFC chip and a virtual wallet will be two of the device's most defining features and Ben Bajarin, an analyst for Creative Strategies LLC, said he expects the tech world to fall in line.
"Love it or hate, Apple drives a lot of standards in the industry," said Bajarin. "They are the mover in these markets. When they do something, the industry seems to follow."
