Apple Inc. share price up, to partner with Visa, American Express and MasterCard to turn iPhone into a mobile wallet

According to a person with knowledge of the matter, Apple Inc. intends to turn its iPhone into a mobile wallet thanks to the collaboration with major payment networks, banks and retailers. The person, who asked not to be named, because the negotiations are still not public, reported that Visa Inc., American Express Co. and MasterCard Inc. are among the companies included in Apples agreement.

One of the analysts, who work for Creative Strategies LLC – Mr. Ben Bajarin – commented in an interview, which was cited by Bloomberg: “Love it or hate, Apple drives a lot of standards in the industry. They are the mover in these markets. When they do something, the industry seems to follow.” Mr. Bajarin also added: “It’s about retention, solving and adding features that keep your base engaged and keeping them loyal.”

Turning the flagship iPhone into a mobile wallet will provide Apple customers with the opportunity to securely make mobile payments at retail outlets. The agreement between Apple and Visa, MasterCard and American Express is expected to be officially announced along with the unveiling of the companys new iPhone model, which has been scheduled for September 9th.

In addition to the fingerprint recognition reader, Apples iPhone will include a special communication chip that will make the mobile payment process simpler. The near-field communication chip will be included for the first time in a mobile phone.

Ms. Trudy Muller, a spokeswomen of Apple refused to make any comments on the situation. Mr. Jim Issokson – a spokesman of MasterCard and Mr. Mike ONeil – a spokesman of American Express also declined to comment. The official representatives of Visa did not immediately respond to requests for comments.

Apple Inc. closed 0.24% higher on Friday at $102.50 per share, marking a one-year change of +45.92%. The tech giant is valued at $613.76 billion. According to CNN Money, the 43 analysts offering 12-month price forecasts for Apple Inc. have a median target of $107.00, with a high estimate of $135.00 and a low estimate of $51.43. The median estimate represents a +4.39% increase from the previous close of $102.50.