• Apple Reportedly Reaches a Tentative Agreement with China UnionPay

    According to Bloomberg, this past week, Apple reached a tentative agreement with China UnionPay recently. The move could see Apple Pay come to China via UnionPay’s 5 million or more NFC equipped point-of-sale terminals. As of right now, the exact terms are sealed because the companies are waiting for input from card-issuing banks. No local banks have signed any deals with some of them reportedly worrying about Apple Pays fees as well its relatively low number of users.

    Research cited by Bloomberg points towards only 1% of retail transactions being handled through Apple Pay. The Cupertino California company in the meanwhile is believed to be charging a 0.15% fee per transaction, while US merchants generally pay 2% in total fees and Chinese merchants are accustomed to paying as little as 0.38%.

    If everything does turn out to be smooth, UnionPay could help launch Apple Pay as soon as 2016. This move could provide competition for current mobile payment players such as Alibaba and Tencent. As a reference and for those of you who didn’t know, Alibaba controls 83% of the Chinese market as of right now.

    The report came just shortly after a report from The Wall Street Journal claimed that Apple Pay could hit China as soon as February of 2016. This particular report claimed that Apple reached deals with four state-run banks, a statement which contradicts that of Bloomberg. With the Chinese market being essential for Apple as one of its strongest areas of growth, we’ll have to be patient and wait to see what ends up happening.

    Source: Bloomberg
    This article was originally published in forum thread: Apple Reportedly Reaches a Tentative Agreement with China UnionPay started by Akshay Masand View original post
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