Apple Plans to Launch Apple Pay in China by February

MasterCard customers who are using Apple Pay to tap their way around the capital will have up to £27.90 in daily fares refunded by MasterCard, which is handy if you’re in London.

In this October 16, 2014 file picture, Apple Pay is demonstrated at Apple headquarters in Cupertino, California. So in order to step on China’s grounds, Apple Pay has yet to gain favor with Chinese banks and, more importantly, the state-owned credit and debit card processor UnionPay.

Apple CEO Tim Cook said that the company is determined to get their services established in the China as soon as possible, for the country is the largest market for electronic payments.

Apple Inc. (NASDAQ:AAPL) is planning to launch its new mobile payment service Apple Pay in China in February of the following year.

The Wall Street Journal adds that Apple will also be dealing with Alipay, a service run by an affiliate of Alibaba Group Holdings Ltd. and WeChat, a chat-and-service app by Tencent Holdings Ltd. The news came into hearing that UnionPay was hesitating to agree to Apple’s usage rates, which were considered high in China as compared to those in the US, the United Kingdom and other Apple Pay markets.

Two of the major four banks Apple is said to be striking a deal with, are Industrial & Commercial Bank of China Ltd and China Construction Bank Ltd. However, spokespeople for these banks have chosen to stay mum on the matter. It enabled iPhone 6 and later iPhones and Apple Watch owners to pay for items on the go via the wireless technology NFC.

No agreements have been signed with any banks linking local cards and Apple pay, according to Bloomberg, but Apple Pay could potentially be introduced as early as 2016. Apple has reportedly partnered with China’s big four state-run banks.

Another hint can also be seen in Apple’s establishment of a Chinese subsidiary that seems to be related to Apple Pay, back in September of this year.

There are concerns about the fee that Apple charges, 0.15% per transaction from the 2% paid by United States retailers.