Expectations for Apple's Mobile Payments Service One Week Before Press Release

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Just one week before Apple holds its press release to announce what many expect to be the iPhone 6 and a new wearable device, reports are circulating that the new iPhone will be coupled with a mobile payments service that could have dramatic effects on the way shoppers make purchases. While there is little solid evidence regarding Apple's service, reports of the phone's capabilities in addition to rumors regarding partnerships with major credit card providers suggest that mobile payments will be a major initiative discussed at the upcoming press release.

Reports indicate that Apple's new payment system will rely on near field communications (NFC) and fingerprint scanning technologies as the foundation of making payments through the expected mobile wallet. While TouchID has previously been used to allow users to log-in to their phones and confirm purchases in the app store, it will now likely function as a security measure to confirm all purchases. Newly added NFC capabilities will allow iPhone users to pay by bringing their phones into close proximity to payment devices in the store. NFC technology has been available on Android devices for years, but many expect that Apple's addition of the technology will result in more widespread use.

In addition, rumors have emerged that Apple is partnering with credit card providers like America Express, Visa, and MasterCard in order to regulate security measures and allow cards to be integrated into the new payment service.

The timing of this mobile payment system is curious as many companies have already entered the mobile wallet space like Google in 2011. However, Apple now has more than twice as many credit cards on file as it did in 2011, there is already a shift in credit card technology towards chip-based EMV cards requiring new card readers, and more people are willing to participate in mobile payments than ever before. There are also expectations that this iPhone will have a much more powerful battery than its predecessors, which could alleviate concerns about a phone dying and users being stranded with no way to make payments.