According to Bloomberg’s anonymous source, Apple is expected to present a radically new mobile payments system in-built in a new iPhone 6 at the press event on September 9th. The system has been reportedly developed in collaboration with three world’s leading credit card companies Visa, MasterCard, and American Express. The terms of this collaboration are not disclosed. 

The functional difference of the new mobile payments system from the existing ones such as Paypal or Google Wallet is that it doesn’t require a credit card per se. The new smartphone will feature an in-built NFC (Near-Field Communication) chip along with a fingerprint recognition system that will allow to make payments with just one touch of finger.

Google was the first to implement NFC technology in its Android smartphones, however, it wasn’t widely accepted by retailers. So Apple’s task will be to set agreements with major retailers to equip their tills with NFC-reading systems.

Experts say that this new Apple’s project is a move to tie up about 800 million iTunes accounts that already include payment information to the mobile wallet in a bid to generate a new revenue stream and enhance users’ loyalty.

The video below explains in detail how the NFC technology works.