Apple Pay ready to hit China
After the debut of Samsung Pay last month, it’s time for Apple’s mobile payment system to make its way to China, one of the largest global smartphone markets. Apple has been trying to break into the trillion dollar mobile payment market in China and introduce Apple Pay for some time.
A company named Apple Technology Service (Shanghai) Ltd was registered at the Shanghai Free Trade Zone last June, according to a report by The Wall Street Journal . The government’s registration database revealed this company’s business operations will involve service and payments integration and technical consulting.
Apple Pay uses Near Field Communication (NFC) that enables users to make contactless payments in stores. In May, Reuters reported Apple CEO Tim Cook saying the company is in communication with Chinese banks and Alibaba Group Holding Ltd with the view of introducing Apple Pay in China.
Alipay, which is affiliated with Alibaba, is the largest payment service in China. The service has 400 million subscribers, of which 80 percent are mobile users. A payment service tied with WeChat, the popular mobile messaging app, and Tenpay run by Tencent are also gaining momentum in the Chinese mobile payment market.
Cook also mentioned the service would fare better in China than in the United States. Analysts also opined that China would prove to be Apple’s “biggest market” over the Americas.
“We very much want to get Apple Pay in China,” Cook told the state-owned Xinhua News Agency.
A report by Techno Buffalo said China has become one of the major markets for Apple over the years as the country generated more than 27 percent of Apple’s $46.9 billion in revenue in Q3 of 2015.
China has strict regulatory norms for electronic mobile payment systems. UnionPay, the state owned card operator, happens to be the only interbank network in China.
It’s been tapped to promote and deploy NFC enabled point-of-sale (PoS) devices at payment terminals in stores throughout China. After receiving Chinese regulatory approvals, Apple will be able to launch Apple Pay, enabling users to pay for products and services, including movie tickets, paying for restaurant bills and even groceries.
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