In a related move, Apple said it would rename Passbook, its app for credit and debit cards and boarding passes, to Wallet. Apple will allow iPhones to be used to pay at 250,000 locations including London's transit system.
"We are now excited to announce we are bringing Apple Pay to the UK, and it is coming next month with eight of the most popular banks, with more coming this fall," Apple's Jennifer Bailey said at the tech giant's developer conference.
The move expands the Apple Pay system launched for US customers last year, which allows iPhone users to tap their handsets at merchant terminals to pay with credit or debit cards.
Google said last month it would launch a rival system for users of Android-powered handsets, with no specific launch date.