Apple announced that customers in China now have UnionPay as payment option when making purchases on the App Store. This will definitely make purchases easier for users in a market which is considered by Apple to be the company's second largest.
UnionPay, China's most popular payment card, is accepted in all of the nation's cities and rural areas. Moreover, it's supported in over 140 countries and regions worldwide and has over 4.5 billion cards issued.
Adding UnionPay as the customer's payment option on the Apple app store would mean that customers in China can now link their debit or credit cards from UnionPay to their Apple IDs when making one-tap app purchases.
"The ability to buy apps and make purchases using UnionPay cards has been one of the most requested features from our customers in China," said Eddy Cue, SVP of Internet Software and Services of Apple.
It was in 2010 since Apple first launched its App Store and online retail presence in China. Since then, the nation has evolved into becoming one of the company's important business locations where future growth is seen as a huge opportunity.
"China is already our second largest market for app downloads, and now we're providing users with an incredibly convenient way to purchase their favorite apps with just one-tap," said Apple.
China has a complex banking payment system that makes it difficult for customers to carry out any forms of payment online. Prior to adding UnionPay, Apple has mainly depended on a top-up system for the company's app store in China. The system can be used with purchases that have a minimum value of $8.16.
Apple has sought ways to promote the adoption of mobile payments using its platform and believes that using UnionPay would be the best option. This means that the customer's money is transferred instantly from his bank account when making purchases, charging him only with the exact amount.
The announcement aims to answer questions on how Apple and its mobile payment system dubbed as Apple Pay will be fully used in China, the largest smartphone market in the world. Apple Pay, which rolled out in the U.S. only a month ago, allows iPhone users to pay for goods and services by 'tapping' their devices at retail stores.
In the fourth quarter of Apple's fiscal standing, China raked in $29.billion or a total of 16 percent of the company's revenue.
Jack Ma, Alibaba's co-founder, said that he is looking into a partnership between Alipay, his own mobile payments service, and Apple Pay.
