Apple Pay Is Launching In China 2016 – Here’s What We Know!

Apple Inc. will tie up with UnionPay pushing itself in the mix of the top players in China’s fast-growing online payment market. The partnership aims to rival the Alibaba Group Holding and Tencent Holding which are taking the bite of the financial pie of electronic payments in the country.

UnionPay , China’s main bank card and payment firm, is a state-controlled consortium that has a monopoly on all yuan payment cards issued and used in the country, brecorder.com reported.

This development comes after China, in July, proposed regulation to shake up the online payment services sector where companies which own payment systems can reap huge profits by charging transaction fees.

The move will make Apple Inc.’s presence felt even more given the company’s established relationship with China. Apple Pay and UnionPay will go up against Tencent’s WeChat payment and Alibaba’s Ant Financial and Alipay.

Apple’s Senior Vice President of Internet Softwares and Services Eddy Cue said that, “China is an extremely important market for Apple.” The partnership with UnionPay will provide Chinese shoppers a “convenient,private and secure” payment options, in a report from brecorder.com.

Apple Pay was launched in the United States and other countries last year. It offers convenience for the owners of iPhone 6, iPhone6S or apple Watch to pay for purchased goods through wireless transactions via NFC(near-field communication).

Shoppers around the world are being encouraged to use smartphones instead of cards to pay for in-store purchases.The lucrative market presented by China proved to be too much to resist given the country’s massive population.

China is currently the largest smartphone market in the world accounting for $12.5 billion in revenue during its fourth quarter. Apple tries to capitalize more with the growing middle class in the country. Terms of the deal between between Apple Inc. and UnionPay were not released.

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