Roger Fingas
Apple has allegedly reached a tentative agreement with China UnionPay, which could see Apple Pay come to China via UnionPay's 5 million or more NFC-equipped point-of-sale terminals.
Exact terms have yet to be sealed because the companies are waiting for input from card-issuing banks, sources told Bloomberg on Wednesday. Indeed no deals have been signed with any local banks, and some of them are reportedly worried about Apple Pay's fees, as well as its relatively low number of users.
In the U.S., only about 1 percent of retail transactions are handled through the service, according to research cited by Bloomberg. Apple is meanwhile believed to charge a 0.15 percent fee per transaction — while U.S. merchants generally pay 2 percent in total fees, Chinese merchants are accustomed to paying as little as 0.38 percent.
Assuming everything goes smoothly however, UnionPay could help launch Apple Pay as soon as 2016, providing competition for current mobile payment players Alibaba and Tencent. Alibaba controls 83 percent of the Chinese market.
The claims come just days after reports said that Apple Pay could hit China in February 2016. The Wall Street Journal said that Apple has reached deals with four state-run banks, possibly contradicting Bloomberg's acccount.
The Chinese market is essential for Apple as one of its strongest sectors of growth, poised to eventually eclipse the U.S. The iPhone moreover enjoys strong popularity in the country, which could make it a prime target for Apple Pay so long as enough banks and merchants support it.
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11 Comments
Finally found a retailer near me (in the US) with Apple Pay and used it for the first time yesterday! Honestly, it was not as clear-cut as I thought it would be, plus it took longer than if I had simply chosen to pay with cash (my usual method). On top of this, the retailer still required my signature, undermining one of the key benefits of the service. I'll probably just continue to use cash instead.
Finally found a retailer near me (in the US) with Apple Pay and used it for the first time yesterday! Honestly, it was not as clear-cut as I thought it would be, plus it took longer than if I had simply chosen to pay with cash (my usual method). On top of this, the retailer still required my signature, undermining one of the key benefits of the service. I'll probably just continue to use cash instead.
How much was the transaction for? I've never been asked to sign on an Apple Pay charge in America or Europe (hundreds of transactions now) using American cards first on my 6 Plus and now with the incredible convenience of the Apple Watch.
[quote name="GregInPrague" url="/t/190342/apple-china-unionpay-have-preliminary-agreement-on-apple-pay-report-says#post_2810451"]How much was the transaction for? I've never been asked to sign on an Apple Pay charge in America or Europe (hundreds of transactions now) using American cards first on my 6 Plus and now with the incredible convenience of the Apple Watch. [/quote] Less than $100.
All of the Apple Pay transactions I have completed, have been processed exactly like I used a Credit/Debit Card. I have been prompted to select Debit/Credit (PIN or Signature), and then if you select Signature, you have to sign. I haven't tried PIN. Not sure it is a time saver either, but I like the security of the merchant not having my card number.
[quote name="aross99" url="/t/190342/apple-china-unionpay-have-preliminary-agreement-on-apple-pay-report-says#post_2810456"]All of the Apple Pay transactions I have completed, have been processed exactly like I used a Credit/Debit Card. I have been prompted to select Debit/Credit (PIN or Signature), and then if you select Signature, you have to sign. I haven't tried PIN. Not sure it is a time saver either, but I like the security of the merchant not having my card number.[/quote] When I use cash neither the retailer nor a credit card company is allowed any personal information. Once when I was at a Best Buy and used cash, they wanted my zip code and I loudly said "I'm paying with cash, you don't need my zip code!"...problem solved.