Post by The Big Daddy C-Master on Feb 19, 2016 6:55:26 GMT -5
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Apple Pay has gone live in China. This puts an end to multiple reports and speculations in recent months about the launch of Apple, Inc.'s (AAPL) payment service in the mainland. China is the fifth country to get the service. Apple Pay is already available in the U.S., the UK, Canada and Australia.
The announcement on the Developer page of Apple's website read, “Apple Pay Has Expanded to China.... You can now support Apple Pay for your customers in China, providing an easy, secure, and private way for them to pay using their China UnionPay credit and debit cards. Apple Pay lets users buy physical goods and services within your app without having to enter payment or contact information.”
In December 2015, Apple and China UnionPay partnered to bring Apple Pay to China in 2016. Shanghai headquartered UnionPay is a bankcard association established in March 2002 with the approval of the State Council and the People’s Bank of China. UnionPay has about 400 domestic and overseas associate members and its cards can be used across 26 million merchants and 1.9 million ATMs. China’s UnionPay cardholders will be able to use Apple Pay on iPhone, Apple Watch or iPad by simply adding their bank cards. (See also: Will Apple Crack China’s Mobile Payment Market?)
Jennifer Bailey, vice president of Apple Pay, said that the U.S. firm has 19 of China's biggest lenders as partners. That means 80% of China's credit and debit cards are eligible for Apple Pay, usable at about one-third of all locations that accept those cards. During an interview in Beijing, Bailey added, "We think China could be our largest Apple Pay market.”
Apple Pay will face stiff competition in China, however; according to an iResearch report, “The competition among mobile payment service providers remained fierce during Q3 2015 as Alipay took up 69.9% while Tenpay occupied 19.2% of China third-party mobile payment market.” China’s third-party mobile payment GMV reached 2.42 trillion Yuan in Q3 2015, rising 5.4% from Q2 2015 and 64.3% from a year earlier.
China is the world’s biggest smartphone market with approximately 675 million smartphone users. Greater China is Apple's second-largest market by revenue with 24.2% of its revenue coming in from the mainland during Q1 2016. According to the China Internet Network Information Center, “By the end of 2015, 358 million people, more than the US population, had already taken to buying goods and services by mobile phone.” This reflects the scope that Chinese markets present for Apple Pay. (See also: Should Apple Investors Be Wary of Overreliance on China?)
The Bottom line
Apple is bullish on China and is looking to explore the Chinese markets for its payment service, Apple Pay. However, it’s not going to be an easy bet for Apple given the fierce competition and dominance of local players like Alipay and Tenpay. It will be interesting to see if Apple is able to replicate the success that China has offered Apple for its products – especially the iPhone.
Read more: Apple Pay Goes Live In China | Investopedia www.investopedia.com/articles/investing/021816/apple-pay-goes-live-china.asp#ixzz40c8hNenK
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Apple Pay has gone live in China. This puts an end to multiple reports and speculations in recent months about the launch of Apple, Inc.'s (AAPL) payment service in the mainland. China is the fifth country to get the service. Apple Pay is already available in the U.S., the UK, Canada and Australia.
The announcement on the Developer page of Apple's website read, “Apple Pay Has Expanded to China.... You can now support Apple Pay for your customers in China, providing an easy, secure, and private way for them to pay using their China UnionPay credit and debit cards. Apple Pay lets users buy physical goods and services within your app without having to enter payment or contact information.”
In December 2015, Apple and China UnionPay partnered to bring Apple Pay to China in 2016. Shanghai headquartered UnionPay is a bankcard association established in March 2002 with the approval of the State Council and the People’s Bank of China. UnionPay has about 400 domestic and overseas associate members and its cards can be used across 26 million merchants and 1.9 million ATMs. China’s UnionPay cardholders will be able to use Apple Pay on iPhone, Apple Watch or iPad by simply adding their bank cards. (See also: Will Apple Crack China’s Mobile Payment Market?)
Jennifer Bailey, vice president of Apple Pay, said that the U.S. firm has 19 of China's biggest lenders as partners. That means 80% of China's credit and debit cards are eligible for Apple Pay, usable at about one-third of all locations that accept those cards. During an interview in Beijing, Bailey added, "We think China could be our largest Apple Pay market.”
Apple Pay will face stiff competition in China, however; according to an iResearch report, “The competition among mobile payment service providers remained fierce during Q3 2015 as Alipay took up 69.9% while Tenpay occupied 19.2% of China third-party mobile payment market.” China’s third-party mobile payment GMV reached 2.42 trillion Yuan in Q3 2015, rising 5.4% from Q2 2015 and 64.3% from a year earlier.
China is the world’s biggest smartphone market with approximately 675 million smartphone users. Greater China is Apple's second-largest market by revenue with 24.2% of its revenue coming in from the mainland during Q1 2016. According to the China Internet Network Information Center, “By the end of 2015, 358 million people, more than the US population, had already taken to buying goods and services by mobile phone.” This reflects the scope that Chinese markets present for Apple Pay. (See also: Should Apple Investors Be Wary of Overreliance on China?)
The Bottom line
Apple is bullish on China and is looking to explore the Chinese markets for its payment service, Apple Pay. However, it’s not going to be an easy bet for Apple given the fierce competition and dominance of local players like Alipay and Tenpay. It will be interesting to see if Apple is able to replicate the success that China has offered Apple for its products – especially the iPhone.
Read more: Apple Pay Goes Live In China | Investopedia www.investopedia.com/articles/investing/021816/apple-pay-goes-live-china.asp#ixzz40c8hNenK
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