iPhone 6 Rumors: NFC Technology to Take Over Apple's Mobile Payments System

The iPhone 6 will introduce Apple's new plan to use NFC technology as the backbone for its mobile payments system.

Morgan Stanley claims that Apple is choosing NFC as the key technology for it. Semiconductor company NXP will be providing the smartphone maker with the hardware. The two already have partnered up for the M7 chip found on the iPhone 6.

"NXP is well positioned to participate in Apple's mobile payments ecosystem. The company signed a licensing agreement with a customer in Q4'13 who we believe is Apple, related to its emerging ID business," wrote Morgan Stanley.

"A recent patent filing by Apple revealed potential use of NFC and secure element, which we think could be embedded," they added.

The report also states that NXP has accelerated R&D spending to support a new program related to its IP deal "with revenue expected in 2H." This seems to line up perfectly with the iPhone 6 release.

"We see this potentially adding $250mn in sales and EPS of $0.25 in 2015," the firm stated.

A recent report from BrightWire cites inside sources that claim Apple will integrate NFC and also struck a deal with China UnionPay to include its services into Passbook.

Both companies also might work together on a new mobile payment service that can be used for purchases in Apple Stores.

NFC is common among Android devices such as the Galaxy S4 and S5. Apple has never felt the need for the technology until now. The company's decision to finally implement the technology could have a massive effect on the market and make the service more mainstream.

Apple's iPhone 6 is expected to launch in the fall of this year.