Apple Pay

Apple Taps Alipay For Apple Store China Payments

alipay

The Apple iPhone 7 was China’s second-best selling phone in 2017 — but Apple has never been a firm thrilled with a silver medal. If 2017 was a silver effort, emerging reports indicate that 2018 will be a year Apple looks to raise the level of its game.

And so, as cNet is reporting this morning, Apple is going for the gold, so to speak, with a little help from China’s favorite digital payment method, Alipay — “uncharacteristic” for Apple, a brand known for the very high walls it puts around its garden with precious few doors for third-party providers to move through.

The tie-up with Ant Financial, the payments counterpart to eCommerce giant Alibaba, will allow Chinese customers to buy products in-store and online using Alipay, despite the fact that Alipay and Apple Pay are arguably direct competitors.

Ant Financial is touting this as the first time Apple has allowed for a third-party mobile payment method in its physical stores.

But Alipay is a massive commerce force in the nation, and Apple is committed to capturing success there — an attempt that has been elusive at times, as Chinese consumers have often balked at Apple’s inflated price tags. Apple’s high water mark in-nation was hit during Q2 2015, in which it generated $16.8 billion.

Chinese mobile payments transactions hit $9 trillion in 2016, with Alipay accounting for around 61.5 percent of those sales.

Apple’s moves on Alipay are one in a pattern with Apple’s efforts to expand its Chinese footprint. Cupertino’s favorite firm has also opened up two data centers and made a billion-dollar investment in ride hailer Didi Chuxing.

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New PYMNTS Report: Preventing Financial Crimes Playbook – July 2020 

Call it the great tug-of-war. Fraudsters are teaming up to form elaborate rings that work in sync to launch account takeovers. Chris Tremont, EVP at Radius Bank, tells PYMNTS that financial institutions (FIs) can beat such highly organized fraudsters at their own game. In the July 2020 Preventing Financial Crimes Playbook, Tremont lays out how.

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