Recode said the feature will be found in the Safari browser on iPhones and iPads that have TouchID. It could be announced at Apple's WWDC in June, with a release by Christmas of this year.
Further, the report mentions Apple is considering bringing the feature to its desktops and laptops, but it's not clear if these plans will lead to an actual consumer product.
The new Apple Pay feature would take on PayPal's One Touch, a similar mobile payment product. Users enter in their PayPal credentials to pay directly from the retailer's checkout.
PayPal has signed up 250 of the top 500 retailers, including Macy's, Home Depot, and Abercrombie & Fitch. It's not clear if Apple will partner with companies for the mobile browser payments or bake the functionality into Safari through a keychain-like storage system.
At its media event on Monday, Apple was happy to talk Apple Pay numbers. The company said Apple Pay users in China added 3 million payment cards to the mobile payment service within the first 72 hours after its launch abroad in February.