Apple CEO Tim Cook arrives in Beijing to meet with Chinese Vice Premier Liu Yandong on May 12, 2015. Cook is in China to discuss forest conservation as well as to promote the Apple Pay service. (Photo : Reuters)
Apple, Inc. is in talks with Alibaba Group Holding Ltd. over the tech giant’s mobile payments system in China, Apple CEO Tim Cook said in an interview with state-run Xinhua News Agency on Tuesday.
"We very much want to get Apple Pay in China," Cook told Xinhua during a visit to the country. "I'm very bullish on Apple Pay in China."
Apple was not available to comment on the report as of press time.
Launched in Sept. 2014, Apple Pay allows users to purchase goods using Apple devices at supported retailers via wireless NFC (near-field communication) technology. According to Apple, the service now handles more transactions than all other "contact-less" payment methods available.
During a technology conference in October, Alibaba founder and CEO Jack Ma said that the Chinese e-commerce giant is open to teaming up with Apple Pay.
"Right now, I think what we can say is that this is focused on the China market for Apple," Alibaba executive vice chairman Joseph Tsai told the Wall Street Journal in November. "We are positive about the potential cooperation, but it depends on the details being worked out."
According to Tsai, a possible scenario is for Alibaba's financial affiliate Alipay, China's largest payments service, to provide back-end services for Apple Pay, allowing iPhone users to pay with Apple Pay using the money from their Alipay accounts.
Industry observers expect China to become Apple's biggest market in the near future. In the first three months of 2015, Apple sold more iPhones in China than in the United States.
Apple hopes to have more stores in China, where it aims to have 40 by next year from the current 22, Cook said.
Cook's China visit was focused on Apple Pay's entry to the country as well as environmental initiatives, he added.
