The Near Field Communication (NFC) technology will reportedly be packed in the next generation iPhone - dubbed iPhone 5.

NFC is short range wireless communication technology, which can be used in mobile phones for a bundle of applications including mobile payments.

According to the MacRumors, Mastercard might partner with Apple for iPhone 5's NFC payment system.

As early as March 2011, the New York Times reported the tech giant was interested in packing NFC into its future iPhone, although it didn't specify when.

According to two people with knowledge of the inner workings of a coming iteration of the Apple iPhone - although not necessarily the next one - a chip made by Qualcomm for the phone's processor will also include near-field communication technology, known as N.F.C.

This technology enables short-range wireless communications between the phone and an N.F.C reader, and can be used to make mobile payments. It is unclear which version of an iPhone this technology would be built into. the article had said.

Moreover, Fast Company  interviewed Mastercard’s Ed McLaughlin, suggesting the iPhone 5 might include the NFC Payment System.

McLaughlin didn't mention Apple “even once” during the interview, for he said that Mastercard’s partners had asked the company to not disclose them.

Um, there are...like I say, [I don't know of] any handset maker out there, McLaughlin says. Now, when we have discussions with our partners, and they ask us not to disclose them, we don't.

However, the rumor is circulating around the Internet, saying Apple’s engineers are reportedly focusing on NFC. At least one developer told 9to5Mac that they heard the hints from Apple iOS engineers, saying the company is leaning heavy into NFC.

Except NFC, iPhone 5 will also reportedly sport a quad-core processor, a larger screen, improved cameras and more.