Apple is reportedly in talks with financial services corporations Visa, American Express and MasterCard for its mobile payment system called iWallet.
According to sources of Bloomberg, the iWallet is one of the features integrated in iPhone 6 which will reportedly be unveiled Sept. 9. This new feature will make mobile transactions easier and more secure with its near-field communication chip. The Touch ID, or fingerprint, will be used to verify user's identity.
Spokespersons for Apple, MasterCard and AMEX all refused to comment about the alleged partnership. Daily Mail reported that Visa has already agreed to the partnership.
News about the iWallet started last year when Apple unveiled iBeacon. According to Forbes, iBeacon is an indoor positioning system that can send information to smartphones through push messages that businesses can use to send in-store-specific promotions and payment capabilities. Users can use the feature to purchase items directly using their devices when they receive the alerts.
Ben Bajarin, an analyst for Creative Strategies in San Jose, Calif., explained that the iWallet will help Apple create reliance and loyalty among its customers.
"It's about retention, solving and adding features that keep your base engaged and keeping them loyal," Bajarin told Bloomberg.
Other than Apple, companies such as Google have also developed ways to integrate mobile finance effectively into their phones. These strategies, though, are not yet incorporated into the U.S. mobile market, and Apple will be a major game changer if it successfully launches iWallet.
However, the success of the iWallet will depend on the retail industry's perception of the product. Most retail outlets were cynic in giving out consumer data to a third-party user.
"There's huge potential with Apple having a market-defining opportunity," Crone Consulting LLC's CEO Richard Crone told Bloomberg. "But, 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."
