Apple is going to launch its new payment service called Apple Pay, the Apple Pay mobile payment service is rolled out to iPhone 6 and iPhone 6 Plus. The service is only supported by the two new iPhone models, as it uses the dedicated secure chip and NFC connectivity in the new smartphones to communicate with retail terminals.

Apple Pay will now allow shoppers to buy items at more than 220,000 stores or inside apps using an iPhone and thumbprint. Participants in the Apple Pay service include McDonald's, Whole Foods and Walgreen etc.

The iPhone 6 and iPhone 6 Plus feature a 'Secure Element' to store credit card data on the smartphones, as well as a 'Device Account Number' unique to each iPhone.

The Apple Pay payment system works with Touch ID authentication and NFC to complete the process. As yet, Apple Pay supports credit and debit cards from American Express, MasterCard and Visa, issued by banks including Bank of America, Capital One, Chase, Citi and Wells Fargo, representing 83 percent of credit card purchase volume in the US.

Apple on Thursday said it has tied up with 500 banks for the service.

Apple also on Thursday announced the iOS 8.1 update bringing Apple Pay, iCloud Photo Library beta, Camera Roll, Continuity features and more. The update will rolls out on Monday, October 20, and is available for iPhone 4S and later models, iPad 2 and later models, fifth-generation iPod touch, and third-generation Apple TV. The company also released OS X Yosemite, and introduced the new Mac Mini and iMac with Retina display, apart from the iPad Air 2 and iPad mini 3.