Report: Apple to Team with MasterCard and Visa on Wallet for iPhone

Apple Inc is planning to turn its new generation iPhone into a wallet via a new partnership with retailers and banks and the biggest payment networks, said a person close to the situation.

The new agreement includes MasterCard, Visa and American Express. On September 9 it is expected to be unveiled with its new iPhone, said an insider, who requested anonymity.

The next generation iPhone will make mobile payments easier by having a chip of near-field communication installed.

That advancement as well as the Touch ID, a fingerprint reader that was debuted on the iPhone 5S will give the users a secure way of paying for items purchased in stores with just a touch of the finger.

While businesses like Google Inc have invested in making ways for smartphones to be a payment device at brick and mortar stores, U.S. retailers until now are slow to adopt to the new technology, thus making it limited as to where you can use the smartphone wallet.

However, with Apple coming into the market that could change since the iPhone has the largest share of the market in the United States.

Like or loath them, Apple drives many standards in the mobile device business, said on industry analysts. They are the mover in these types of markets, as when they do something the industry usually follows them.

An Apple spokesperson would not comment on the possible iPhone wallet. At the same time, spokespersons for Visa and MasterCard also declined to make any comment on the matter.

For Cupertino, California based Apple its push into creating the mobile wallet is to maintain users within its own ecosystem thus creating additional loyalty to the brand and the demand for its own products, said an industry analyst.

Apple’s decision is also due to generating additional revenue from its roughly 800 million worldwide iTunes accounts that include payment info and that have been created already.

Up to this point, the accounts for iTunes have been used in the marketplace of Apple, which is small compared to the huge retail market.

If the mobile wallet by Apple takes off, it could open more possibilities as a platform for marketing by generating revenues in advertising for the brands aimed at consumers to reach shoppers while at a store.

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