iPhone 5 could allow you pay by just waving your handset

After replacing gadgets like digital cameras, MP3 players and portable games, iPhone could possibly replace your wallet too in next few weeks.

The next iPhone, which is which is likely to be launched in next two weeks is expected to be featured with a built-in chip which can serve as your credit or debit card to carry out small payment transactions.

Technicians looking at leaked images of the internals of the device have found what they believe is an NFC chip inside the phone.

NFC is currently seen as the successor to the chip-and-pin that serves as as a small contactless card which can be waved against scanners at tills to automate a payment, the Daily Mail reported.

Moreover, some debit cards have already installed the feature, while some have already using the technology such as Pret a Manger.

Other phones have already come with in-built NFC, with Google making a big play for the market with the introduction of 'Wallet' accounts in the United States.

According to 9to5Mac, which has credible sources within Apple, "Apple could tie in with a payment processor like Citibank's PayPass system for credit card transactions - or it could become a payment processor of sorts with its hundreds of millions of credit cards already on file at iTunes."

-With inputs from ANI