Apple will be adding NFC (Near Field Communications) to the device next year.
Apple has been considering the integration of the e-wallet technology to iOS for some time.
Earlier reports said that the NFC technology will be added to the iOS and the iPhone 4S. However this was proven inaccurate following the release of the device.
The current smartphone market only has about 10 percent adoption of NFC technology but Apple plans to increase the adoption from 10% to 50% in the span of a few years.
Reports also anticipate that the number of NFC-based mobile wallet users will grow to 594 million in 2016.
Andy Lees, president of Windows Phone, said at the AsiaD conference last month that consumers can expect NFC-equipped iPhones and Windows Phone 7 devices in 2012.