“Apple is working with Dutch chipmaker NXP to add secure short-range wireless technology into the next iPhone, enabling new pay-by-touch capabilities in the latest bid for the smartphone to replace the wallet,” Tim Bradshaw, Sarah Mishkin, and Daniel Thomas report for The Financial Times.

“Several people familiar with Apple’s plans say NXP will provide the secure near-field communications chips that will allow an iPhone to connect with payment terminals or ticketing systems, as well as opening up the possibility for other applications in the ‘internet of things,'” Bradshaw, Mishkin, and Thomas report. “Analysts say Apple could galvanise a smartphone payments market that has struggled to take off, even though tap-to-pay technology has been built into mobile devices for eight years.”

“Thanks to iTunes and the App Store, Apple already holds credit card details for some 800m customers, giving it a potential advantage over the many earlier attempts at mobile payments,” Bradshaw, Mishkin, and Thomas report. “It has been recruiting executives with experience in mobile payments for the last several months in both Europe and the US.”

Read more in the full article here.

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