Apple, American Express partner on iPhone payments system

Apple has signed an agreement with American Express to work together on its new iPhone payments system.

Apple has signed an agreement with American Express to work together on its new iPhone payments system.

Apple will be partnering with Visa and MasterCard in addition to American Express for its mobile payments initiative, which will be unveiled at Apple’s product event on 9 September, reports Re/code.

The new iPhone payments system is expected to allow iPhone 6 owners use their phones in place of credit cards, debit cards or cash to pay for goods in brick-and-mortar stores.

Customers will present their phones at the checkout counter of partnering retailers to transmit payment information to complete a purchase. It is not clear which retailers have signed on to accept such payments, reports Re/code.

The website reported that Apple’s iPhone payments product will end years of speculation about when it will take advantage of its massive file of hundreds of millions of credit cards from iTunes and App Store customers to create its own mobile wallet.