As the rumored September launch of Apple Inc.’s (NASDAQ:AAPL) iPhone 6 draws ever closer, a new report surfaced Wednesday claiming that the company is working on a mobile payment service, or e-wallet, to be launched along with the new phone.
Apple is rumored to be in talks with partner companies to launch the e-wallet, or digital wallet, which will allow users to pay for their purchases using the iPhone. The service, which is expected to be a competitor to Google Inc.’s (NASDAQ:GOOGL) Google Wallet, is likely to be rolled out this fall, with some people saying that the launch could coincide with the release of the iPhone 6, Apple Insider reported.
Apple filed a U.S. patent application earlier this year for a wireless “method to send payment data through various air interfaces without compromising user data.” The patent, which was believed to be included in the upcoming iPhone 6, outlined a digital wallet dubbed by many as the “iWallet.”
Wednesday’s report from Apple Insider was based on a different report from The Information, which said that Apple had approached Visa Inc (NYSE:V) for a partnership that could be significant in finding a way around the payment-processing chain.
While Apple is yet to explore the digital-wallet segment, Google has already made its presence felt in the sector by integrating its near field communication, or NFC-enabled Google Wallet system into Android.
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Although some previous rumors had suggested that Apple was planning to integrate NFC modules in the iPhone for the iWallet to function, a new source has revealed that the system is likely to rely on Bluetooth and Wi-Fi.
Meanwhile, RBC Capital Markets, a Canadian investment bank, has raised its price target for Apple's stock to $110, following the company’s record earnings report this week. The firm recommended that investors buy ahead of a “busy fall” for the Cupertino tech giant, Apple Insider reported.
According to the investment bank, the company's stock is moving up because of the anticipation about the iPhone 6, new iPad models and the iWatch, while there are also talks about improvements in Apple’s capital allocation policy.
“We believe AAPL has multiple levers ahead of it that will drive further revenue acceleration,” Amit Daryanani, an analyst at RBC Capital Markets, wrote in a report. “Notably, we believe emerging market penetration will remain a key and material revenue driver for the company over the next several years.”