Apple Pay has launched in China, a move which should give it a headstart over many rivals, but also bring it up against tough incumbents.
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Given that Apple Pay hasn’t taken off elsewhere quite as strongly as Apple would like, it seems that China (early teething problems aside) may represent a big boon for Apple’s mobile payment business.
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 chief executive Tim Cook said of the service on a verified China microblog. Amid strong interest in China, this has left many users unable to sign-up for and begin using the contactless payment service.
Brands and retailers have been shifting in-store strategies to offer an omnichannel retail experiences for consumers, and a large aspect of the tactic relies on mobile-based payment solutions.
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. UnionPay, unusually in China, supports inter-bank payments and also controls debit and credit card processing, creating a very different financial landscape to that of most other countries, where Mastercard and Visa rule.
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Another user wrote on the Weibo micro blogging platform in China that she was facing great difficulties in trying to bind her card with Apple Pay. The company promised that the issues would be resolved soon. Data shows that about 360 million people are already buying goods and services with their mobile phones in China. In addition, competing services such as Alipay subsidize equipment costs for businesses wanting to accept the mobile payment service.
