New Reports Indicate Apple Watch's Potential for Payments

In addition to possibly revealing a mobile wallet next week, Apple is also expected to showcase its long-awaited smartwatch with Near Field Communication capabilities.

A recent report in The Wall Street Journal supports an earlier report from KGI Securities that Apple will make NFC a component of an upcoming smartwatch. The NFC chip will support contactless payments and other two-way communications, the Journal said.

"I think Apple will make a ton of money off the iWatch because it is something consumers are waiting for," said Mary Monahan, head of mobile for Javelin Strategy & Research, in an interview with PaymentsSource.

While the Journal speculated that the iWatch is not ready to ship, the timing of its expected Sept. 9 announcement moves Apple into what has become a crowded smartwatch field.

Motorola is expected to announce a line of smartphones and new details on its Moto 360 smartwatch on Sept. 4, and Samsung announced a new version of its Gear smartwatch this week. Sony, LG and Asus also showed off new smartwatches this week.

More than a year ago, Apple's purchase of Oakland, Calif.-based Passif Semiconductor Corp. was widely seen as a move to fuel development of a payment-capable smartwatch with a long battery life.

Various Apple patents have signaled the company's interest in applying NFC technology to establish a two-way communication system.