Despite Visa and MasterCard still struggling to get into the Chinese market, Apple has found one way, working out an agreement with UnionPay to make it easier for Apple apps to be purchased there. In exchange, Apple will let Chinese consumers pay with UnionPay for one-tap purchases, but not (yet) Apple Pay, the Wall Street Journal reported.
“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, Apple’s senior vice president of Internet Software and Services, in a statement. “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.”
Although Apple Pay is still not accepted in China, it does have a few viable paths there. “The UnionPay partnership could potentially open the door for Apple Pay in China, if Apple can strike agreements with popular retailers and overcome technical and regulatory hurdles. Another route for Apple is a possible alliance with Alibaba, China’s largest e-commerce company, whose payment affiliate Alipay is the country’s largest mobile payment processor,” the Journal said. “A possible scenario is for Alibaba’s financial affiliate to provide back-end services for Apple’s Apple Pay payment system, Alibaba Executive Vice Chairman Joe Tsai said in an interview earlier this month. That could entail iPhone users in China paying for goods with Apple Pay using money from their Alipay accounts, he said.”
