Apple Pay Expected to Launch in China by February 2016

Apple-Pay-250x434 (1) copyApple plans to launch Apple Pay in mainland China before the weeklong Spring Festival starting February 8, 2016, also known as the Chinese New Year, according to The Wall Street Journal.

The report claims Apple recently reached deals with China's big four state-run banks to launch Apple Pay, but the iPhone maker could still face regulatory hurdles in the country.

China's big four state-run commercial banks include the Bank of China, China Construction Bank, Industrial and Commercial Bank of China and Agricultural Bank of China.

Alipay and Tenpay are currently the two largest electronic payment platforms in China, with nearly 64% combined market share, according to the report, citing research firm Analysys.

China's only interbank network UnionPay holds a monopoly on the country's credit and debit card processing, effectively blocking MasterCard and Visa. The state-run organization does offer some credit cards affiliated with American Express, MasterCard or Visa for use abroad.

One Chinese developer who has seen the latest beta version of Apple’s mobile-operating system said logos for China’s UnionPay can be found within the package. China UnionPay Co. press officials didn’t respond to requests for comment.

Apple is committed to an international expansion of Apple Pay, having launched the mobile payments service in Australia and Canada last week in partnership with American Express. Apple Pay is also coming to Hong Kong, Singapore and Spain in 2016.

China has also been an oft-rumored candidate for Apple Pay. Apple CEO Tim Cook told Chinese news agency Xinhua in May that Apple "very much want to get Apple Pay in China," adding that he is "very bullish on Apple Pay in China."

Apple has registered an entity in the Shanghai free-trade zone to prepare for the launch of Apple Pay in China, the WSJ previously reported. Apple Technology Service (Shanghai) Ltd. was registered on June 10, per the Shanghai government's company registry.

Related Roundup: Apple Pay
Tag: China

Popular Stories

Generic iOS 18

Apple Releases First Betas of iOS 18.3 and iPadOS 18.3

Monday December 16, 2024 10:06 am PST by
Apple today seeded the first betas of upcoming iOS 18.3 and iPadOS 18.3 updates to developers for testing purposes, with the software coming a week after Apple released iOS 18.2 and iPadOS 18.2. iOS 18.3 and iPadOS 18.3 can be downloaded from the Settings app on a compatible device by going to General > Software update. There's no word yet on what's included in iOS 18.3 and iPadOS 18.3, ...
apple tv 4k yellow bg feature

New Apple TV Rumored to Launch Next Year With These Features

Tuesday December 17, 2024 9:02 am PST by
The current Apple TV 4K was released more than two years ago, so the streaming device is becoming due for a hardware upgrade soon. Fortunately, it was recently rumored that a new Apple TV will launch at some point next year. Below, we recap rumors about the next-generation Apple TV. Bloomberg's Mark Gurman last week reported that Apple has been working on its own combined Wi-Fi and...
iPhone 17 Slim Feature

'iPhone 17 Air' With 'Major' Design Changes and 19-Inch MacBook Detailed in New Report

Sunday December 15, 2024 9:47 am PST by
Apple is planning a series of "major design" and "format changes" for iPhones over the next few years, according to The Wall Street Journal's Aaron Tilley and Yang Jie. The paywalled report published today corroborated the widely-rumored "iPhone 17 Air" with an "ultrathin" design that is thinner than current iPhone models. The report did not mention a specific measurement, but previous...
New Things Your iPhone Can Do in iOS 18

20 New Things Your iPhone Can Do in iOS 18.2

Monday December 16, 2024 8:55 am PST by
Apple released iOS 18.2 in the second week of December, bringing the second round of Apple Intelligence features to iPhone 15 Pro and iPhone 16 models. This update brings several major advancements to Apple's AI integration, including completely new image generation tools and a range of Visual Intelligence-based enhancements. Apple has added a handful of new non-AI related feature controls as...
Apple TV 4K hero 221018 feature

Here is Everything New for the Apple TV in the tvOS 18.3 Update So Far

Tuesday December 17, 2024 6:25 am PST by
Apple on Monday seeded the first tvOS 18.3 beta to developers for testing. The update will likely be released in January. So far, there are only minor changes for the Apple TV, with one new feature and a few code changes discovered. Below, we outline what is new in tvOS 18.3 so far. Robot Vacuum Support in Home App First, tvOS 18.3 will add robot vacuum support to the Home app on the...
iPhone 17 Pro Dual Tone Feature 1

iPhone 17 Pro Rumored to Stick With 'Triangular' Camera Design

Wednesday December 18, 2024 2:36 am PST by
Contrary to recent reports, the iPhone 17 Pro will not feature a horizontal camera layout, according to the leaker known as "Instant Digital." In a new post on Weibo, the leaker said that a source has confirmed that while the appearance of the back of the iPhone 17 Pro has indeed changed, the layout of the three cameras is "still triangular," rather than the "horizontal bar spread on the...

Top Rated Comments

Thunderhawks Avatar
118 months ago
Always amazing how people are upset (seriously?) about something that considering how long we live is only a blip in our lives.

Folks, you survived so far without Apple Pay and NFC!

Your Mom still loves you (I hope) and eventually Apple or Google or Samsung or Microsoft Pay will come to you
and be everywhere.

Good things come to those who wait!
Score: 4 Votes (Like | Disagree)
GenesisST Avatar
118 months ago
Pssst.. Apple! Don't forget Visa and Mastercard in Canada, pretty please!
Score: 3 Votes (Like | Disagree)
RimasM Avatar
118 months ago
Yeah. Screw the Europe, launch in China first.
Score: 3 Votes (Like | Disagree)
tmiw Avatar
118 months ago
Always amazing how people are upset (seriously?) about something that considering how long we live is only a blip in our lives.

Folks, you survived so far without Apple Pay and NFC!

Your Mom still loves you (I hope) and eventually Apple or Google or Samsung or Microsoft Pay will come to you
and be everywhere.

Good things come to those who wait!
I think people (at least in the US) expected a seamless experience just like with Apple's other products. Unfortunately it didn't work out that way, partly because Apple didn't expect such a huge backlash by some retailers and partly because the rest simply put off upgrading until the last second. Knowing what they know now, Apple probably would either have purchased LoopPay and included MST in their products to compensate or would have put a far greater emphasis on in-app use of Apple Pay in the US than in-store use for the first year or two.
Score: 3 Votes (Like | Disagree)
appledefenceforce Avatar
118 months ago
Europe is a more capital intensive market, actually, and FYI, by number of inhabitants as well. The GDP is higher than in US. So what's your point?
But Europe doesn't buy as many iPhones as other markets. So Europe can just sit down and wait. :p
Score: 2 Votes (Like | Disagree)
kdarling Avatar
118 months ago
0.15 for every $100 is a big cut? :confused:
In some countries, it's a HUGE cut.

For example, contactless fees in many EU countries such as France are only around 0.22%. The UK, which might be capping theirs soon the same way, is currently 0.65%. Either way, giving Apple 0.15% is impossible to support.

In Canada, the debit card fee is $0.006 (6/10ths of a penny) per transaction. In the US, Apple demands 1/2 cent per debit transaction, or what would be almost the entire Canadian fee.

--

And that's just the tip of the Apple Pay iceberg. Banks also have to pay Visa/MC etc for tokenization services per transaction. For example, MC charges $0.50 for provisioning a token, and $0.025 per token API call.

The banks also have to hire extra help centers for Apple Pay.

Moreover, they have to give Apple constant reports about purchase types and places... information that was formerly proprietary.

--

At least MC and the banks are providing servers and services and comms and fraud handling to earn their per-transaction fee.

OTOH, Apple itself has no such costs during a transaction, since they only provide the device (which they already made a huge profit on). The fee is basically a charge for access to their users (a classic the-customer-is-the-product scenario).
Score: 2 Votes (Like | Disagree)