In a last-minute scoop, Bank Innovation reports that it has learned that both Square and PayPal have been working with Apple on its mobile payment solution. Sources tell the site that both companies have been aware of Apple’s so-called ‘iWallet’ payments initiative for a while now, and are updating their services to support it.

How would this work? On Square’s side, it is getting ready to update its terminals to support EMV (Europay MasterCard Visa), and Bank Innovation says that it is also adding in support for NFC, Bluetooth LE and “other technologies.” As for PayPal, the site says it could be brought in to help Apple with a one-click online checkout.

If legitimate, the news would be very interesting, as many believed that both Square and PayPal would be negatively affected by Apple’s entry—with its nearly 1 billion credit cards on file—into the mobile payment space. A partnership like this, however, would actually be a good thing for all three companies, as each has its own strength.

We’re now just a little over an hour away from Apple’s ‘historic’ iPhone event, where it is expected to unveil its new mobile payment service. The company is said to have already signed on a number of major partners for the project, including 3 of the 4 big credit card providers, various retailers, and several major financial institutions.

[Bank Innovation]