Apple launches Apple Pay in China enabling consumers in Greater China to make payments using its iPhones and Apple Watch. (Photo : YouTube/ Apple)
Apple Inc. eventually launched Apple Pay in China with the hope that the country will be the company's "land of opportunity" in terms of mobile payments. According to Apple Pay vice-president Jennifer Bailey, China could turn out to be their largest market globally.
The Cupertino tech titan launched Apple Pay in the United States about two years back, but the mobile payment service is yet to get out of its infancy. Apple Pay has been developed around the concept that it will help consumers to use the company's iPhones and Apple Watch as mobile wallets, which can be used in brick-and-mortar retail stores possessing point-of-sale checkout registers equipped with NFC.
Already a number of Chinese banks have partnered with Apple on Apple Pay, and more are likely to join the bandwagon soon. What is encouraging for Apple is that major Chinese banks like Bank of China, Industrial and Commercial Bank of China (ICBC), and Bank of Shanghai have already joined hands with the company in its pursuit for the largest market for its mobile payment service globally, US Today reported.
Aside from the Apple physical retail stores, several top merchants like KFC, McDonald's, Burger King, 7-Eleven and Circle K are also accepting the payments via the Apple Pay in China. In fact, consumers in China can also use the mobile payment service for a good number of apps.
In December last year, Apple announced its collaboration with UnionPay bankcard network, which controls the national inter-bank clearing as well as settlement system in China. UnionPay is the Chinese version of Visa and MasterCard and the company has already issued over 5 billion UnionPay cards globally.
In terms of revenue, Greater China is the second-largest market for the Cupertino tech giant. Despite the current economic slowdown, the region continues to be the biggest smartphone market in the world. According to reports, more than 358 people in Greater China have been purchasing goods and services using their mobile phones by the end of 2015. However, this doesn't mean that Apple Pay will not face stiff competition in China, Venture Beat said.
Most people in this region are currently using the payment services offered by two major Internet companies operating in China for a long time now. While Tencent Holdings Limited operates WeChat Payment, the Alibaba Group Holding Ltd runs the Alipay via its affiliate Ant Financial Services Group.
Watch the Apple Pay demo video below:
