Apple Pay: iPhone linked mobile wallet service introduced

Taking a step further, Apple on Tuesday unveiled its much anticipated mobile wallet called Apple Pay. The wallet allows consumers to use iPhones linked to credit cards for what Apple claims are 'more secure, convenient payments'.

Apple Pay is built into the tech giant’s latest smartphones, the iPhone 6 and iPhone 6 Plus. Both smartphones will have a 'secure element chip', for Apple Pay service.

Stressing on the need to change the payment process to keep up to date with technology, Apple CEO Tim Cook said, "We've placed a lot of energy into creating an entirely new payments solution."

"Credit and debit cards have exposed account numbers, outdated magstripes, and vulnerable security codes. Apple Pay on the other hand stores payment information in an encrypted manner," Apple said during the launch event.

Apple sought to assure users that it will not store credit card information. Apple Pay will use a one-time payment number and security code each time a user pays, the company said.

The service will work with the three major payment networks: American Express, MasterCard, and Visa.