Apple plans to launch Apple Pay electronic payment service in China by February next year according to Wall Street Journal. Company is hoping to launch before the Chinese New Year is celebrated on February 8th.
The company has struck deals recently with China’s big four state-run banks that will allow Apple Pay users to link their local bank accounts to the mobile payments service. However, There is no clearance yet about how much Apple would charge for purchases made through Apple Pay. In the USA Apple gets 0.15% of all credit card transactions and 0.5 cents per debit transaction.
Apple Pay was launched in the USA in October last year and now Apple to debut its E-payment service to China the most important market place for smartphones.
Apple Pay works on company’s latest iPhone models like the iPhone 6, iPhone 6S and Apple Watch. It is based on near-field communication (NFC) technology which allows users to tap their devices on readers at store sales counters and complete purchases by scanning their fingerprints.
When Apple Pay will launch in China it would compete with Alipay the online payment platform run by Alibaba Holding Group Ltd affiliate Ant Financial and UnionPay Co, a state-controlled consortium that has a monopoly on all yuan payment cards issued and used in the country.