Mobile payments are definitely the future. After Square announced their new reader for Apple Pay, it seems that Apple’s payment system is ready to hit new markets. According to Apple Insider, China is the Cupertino-based company’s new target.
The first source to mention this was CNBC, through a tweet, but other details, like Apple’s plans of dealing with regulatory hurdles, credit card partnerships or bank agreements, were not revealed. Still, shortly after, more reports confirming the rumors appeared.
It’s up to Union Pay to make this possible
It seems that Apple Pay will work with accounts from China’s four state-run banks and it should make its debut before February 8, when the Chinese Spring Festival will begin.
Apple Insider also mentions that the touchless payment accounts for more of Apple’s overall revenue with each quarter, so there’s no wonder they’re targeting such a big market as China. Until now, Apple Pay doesn’t seem to be that appealing for UnionPay, a state-owned credit and debit card processor, essential for the system’s success in China.
Back in 2014, Apple was very close to an agreement, but everything failed after UnionPay didn’t agree with the usage rates, the same as on other markets where Apple Pay is present. For China, they were way too high.
Tim Cook sees a bright future for Apple Pay
As for CEO Tim Cook’s position, he seems to be very confident in Apple Pay’s chances in China, claiming that the country’s growing middle class and the high saturation of smartphone owners could be indicators for mass adoption of the system. He also mentioned that the country has a huge growth potential, during a recent conference call, when Apple’s Q3 2015 results were discussed.
Apple Pay has a strong start in other countries, even though people still prefer traditional payment methods and aren’t willing to switch to something else soon.
