Apple is working with Dutch chipmaker NXP Semiconductors NV to add secure near-field communications (NFC) technology into its next iPhone.
The NFC technology will allow smartphone users to pay by touch, according to a report by the Financial Times.
The report cites people familiar with Apple's plan.
NXP will provide the secure near-field communications chips that will allow an iPhone device to connect with payment terminals or ticketing systems.
Both Apple and NXP have declined to comment so far.
NFC technology allows a smartphone to communicate wirelessly with other devices by tapping them together.
Apple officially invited media to a "special event" in its hometown of Cupertino, California, on Sept. 9, this week when the company is expected to debut the latest iPhone.
The company is expected to debut a larger 4.7-inch and 5.5-inch iPhones at the event, a move that could be driven in part by the success of larger devices by rivals like Samsung Electronics.
The device will run on Apple's next-gen iOS 8.
Apple is also expected to introduce its long-awaited smartwatch at the event as well.
Rumored specs for the next iPhone includes: 1704 x 960 pixel resolution, a faster A8 processor, camera upgrades, and a more durable, sapphire screen.
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