China is the biggest and probably the most lucrative market in the world, so it makes sense that Apple is moving to bring its Apple Pay service to the country. But seeing as this is China, jumping in directly is likely not the right decision, which is why the iPhone factory is teaming up with UnionPay.
UnionPay is the association that has power over China's bank card industry. The plan right now is to bring the service to the country come 2016, but Apple has not given a definite timeframe.
According to Eddy Cue, senior vice president of Internet software and services, Apple is backed by 15 of China's leading banks, but nothing can be put into practice just yet since the service still needs to be vetted by Chinese regulators.
"China UnionPay is dedicated to promoting payment innovations and providing secure, convenient mobile payment experiences for its hundreds of millions of cardholders, aligning multiple parties in the industry," said Chai Hongfeng, executive vice president of China UnionPay.
From our understanding, Apple Pay is expected to work with QuickPass, a contactless payment system that has been developed by UnionPay. The service is intended to allow iPhone 6 and Apple Watch owners to pay for goods and items across China when the service becomes available in the country come next year.
While Apple has not given a definite date, the company is aiming to have the service released before the Chinese New Year, which takes place on Feb. 8, 2016. It simply means the service could be ready in January, or early February at the latest, before the New Year celebrations. At the moment, it remains unclear if the service will past the plethora of tests created by the Chinese government.
Still, anything is possible since Apple has invested $13 million to bring Apple Pay China after the service was activated in the free trade zone located in Shanghai.
Whenever the service becomes available, China will become the fifth country to have support for Apple Pay. The service is currently available in U.S., the UK, Canada, and Australia; but for those in Hong Kong, Spain, and Singapore, the service is on the horizon.
