Apple Introduces ApplePay In China
The more than two year old service is all set to serve the Chinese customers.
The most valuable company, Apple Inc. has recently announced for its customers in China to pay for their goods by using Apple Pay. The step taken to win over the consumers of the region can be explained in simpler words as way which let the consumers take out their Apple Watch or an iPhone to get the payment made. On Thursday, the Silicon Valley business announced its plan by forming alliance with China UnionPay, China’s only interbank network.
The service has been launched by the Cupertino, Calif. firm in collaboration with twelve of China’s banks. The customers can add to their Apple mobile wallet the payment cards if they are in the possession of eligible debit and credit cards. Among twelve collaborated banks include the Bank of Shanghai and Agricultural Bank of China, moreover, seven more banks, which include Bank of Beijing, are most likely support the proposed service sometime later in 2016.
According to Reuters, vice president of Apple Pay, Jennifer Bailey has stated that the company believes China to be the largest market of Apple Pay. According to the data given by Strategy Analytics, China has accounted for revenue of $18.4 billion in the holiday quarter of December. This summed up to the increase of 14% as compared to the last year’s, 2014, same period. This spectacular growth was witnessed amidst the crumbling smartphone market of the region. In 2015 the smartphone market of China fell down to a growth of 3.4% from 2014’s stronger figure of 33.6%.
Back in 2014, Apple Pay was introduced in U.S. and since then it has been expanded to Australia, Canada, and U.K. Later in 2016, the service is highly expected to hit the region of Spain, Hong Kong, and Singapore as well.
In China, the customers using iPhone 6 or later or the Apple Watch can avail the Apple Pay services. Just as the developers add support for the introduced service, the consumers can also pay for apps purchases. Moreover, the newly introduced service will be available for use at any of the China’s retail stores if it had a register with China Union Pay credit card network compatibility and which support near-field communication (NFC) wireless technology.
However, as reported by Reuters, more than 315 million Chinese have already been using the similar service for buying goods or services and such service is offered by the region’s biggest companies, AliBaba and Tencent. Their services do not only let the consumers to make online transaction but it offered a wide range of services for example booking a cab or shopping. So, Apple has to offer something unique which can made the Apple consumers to prefer Apple Pay over AliBaba’s and Tencent’s services. The crucial step which Apple has taken is to form partnership with the region’s banks where China’s largest ICBC has allowed the customers to use the service from Thursday.
It has also joined hands with China’s State Bank card company Union Pay which intends to defend the market which looks like it has been losing to Tencent and AliBaba. .
At the market which closed on Thursday, Apple Inc. stock price stood at $96.26. The 52 week range of the stock is $92 to $134.54.