The agreement includes participation by Visa Inc., MasterCard Inc and American Express Co and will be announced September 9 along with unveiling of the next iPhone, according to the source.

The new iPhone will simplify mobile payment by including a special communication chip, along with a fingerprint recognition reader that debuted on the most recent iPhone, the source said.

Apple is expected to unveil a larger screen version of its popular iPhone along with its first smartwatch on September 9 in its hometown in Cupertino, California.

According to various reports, the new iPhone may come in two variants -- one with 4.7-inch and the other with a 5.5-inch screen to compete with large screen smartphones made by Korean rival Samsung and others, which are powered by the Android operating system.

Tech enthusiasts are also awaiting the launch of Apple's smartwatch. Reports also say that Apple has obtained the trademark for the name 'iWatch' in several countries. 

Apple Inc has send formal invitation to media for a special event to be held in California on September 9, where the company is expected to unveil the latest versions of its best-selling smartphones.

The most anticipated smartphone of 2014, Apple iPhone 6, is likely to have 128 GB internal storage capacity, according to the fresh reports.

According to a blog, Apple will be releasing a 128 GB in 5.5 iPhone 6, but the rumoured 4.7 in option will not have the larger capacity. Another website said that the device will be launched on September 19 in 32 and 64GB variants.

Meanwhile, the luxury accessory maker, Brikk, has already started taking pre-orders for the 24-karat gold iPhone 6.

The official Brikk site displays, the yet to be announced iPhone 6 especially in black and white colour for seams, precious metals for the body, and choice of a diamond-covered or plain Apple logo.

"The Lux iPhone 6 will be released in September or October. It has a thick layer of pure 24-karat yellow gold covering all areas of the iPhone 6," stated the site.

Lux iPhone 6 cost Rs 2,70,000 of the Yellow Gold variant without Diamond logo and Rs 5,29,000 for the Platinum variant with Diamond logo.