Thursday, February 25, 2016

Apple Pay Officially Launches in China

Apple Pay

The Launch of Apple Pay in China

Apple Pay that offers great prospects though some substantial challenges has now landed in its fifth country. Apple has recently announced on its Developer page as well as through the Weibo account of CEO Tim Cook, the launch of Apple Pay in China. The Chinese consumers would now be capable of utilising the service in purchasing items at supported retailers by using their iPhones and Apple Watches.

The potential to pay for goods through a smartphone has been around for some years particularly in China. Apple Pay, launched in 2014, helped in arousing consumer interest in the concept. Apple had faced competition from Samsung Pay as well as Google’s Android Pay besides banks like JP Morgan and retailers like Walmart, who also intend to join in the mobile payment bandwagon.

Apple Pay is already being utilised in US, UK, Canada and Australia and in order to gain more foothold, the service is required to extend to additional countries. China tends to represent a main achievement since it is the largest smartphone market in the world and Apple’s second largest market with regards to revenue.

Encounter Key Challenges in Winning Chinese Consumers

Apple Pay seems to encounter key challenges in winning over Chinese consumers where several of them already pay for products through their phone by using services offered by one of the country’s two main online companies namely Tencent Holdings and Alibaba Group.

Towards the end of last year, around 358 million Chinese paid for goods through their smartphones, according to Reuter’s reports that cited data from the Chinese Internet Network Information Centre. Moreover, Apple Pay needs retailers to furnish their point-of-sale terminals with NFC or near-field communication technology that tends to communicate with equally equipped iPhone of Apple Watch.

According to BBC News, Alipay system of Alibaba tends to conduct transaction by displaying quick response - QR codes that can be read by more phones and also supports both iOS as well as Android devices. One retailer who refrained from being named for fear of harming business prospects informed Reuters, that`with 100% saturation of local payment systems, none have been demanding for Apple Pay in China’.

Apple Pay – Solution in Need of a Problem

`Presently all have a local payment option on their phone and so Apple Pay is a solution in need of a problem’. In order to compete with Tencent’s Tenpay service as well as Alipay, Apple had been in partnership with UnionPay, which is a bankcard association, dominating the credit and debit card processing market of the country.

Apple Pay is presently supported by 19 various Chinese banks as well as lenders meaning that the service can work with about 80% of credit and debit cards of China, according to Vice President of Apple Pay Jennifer Bailey, who informed Reuters. To make in-store transactions, Apple Pay needs to work with the iPhone 6S, iPhone 6S Plus, iPhone 6, iPhone 6 Plus together with Apple Watch.

The service works with all those devices and with the iPad Air 2, iPad Mini 3, iPad Mini 4 and iPad Pro to make in-app purchases. No comments had been done by Apple to a request for comment.

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