In what reports are calling a first for China’s technology sector, Alibaba-affiliate Ant Financial is reportedly looking to launch wearable payment technology systems in the nation.
Ant Financial has reportedly partnered with smartphone manufacturer Xiaomi. The two companies revealed Thursday (April 2) that they will collaborate to develop wearable payment gadgets. Ant Financial will aim to link its Alipay Wallet mobile app with Xiaomi’s existing wearable technology, the Mi Band fitness bracelets.
This link will be available for Alipay users on the Google Android operating system. A version available for iPhone will be available later on, the firms said.
Experts say this partnership is a breakthrough in China, where wearable technology has not yet gained significant traction. The technology aims to reduce the need for passwords and boost payments security. By avoiding NFC wireless technology, often criticized for its security holes, Ant Financial and Xiaomi hope to tout the new service as a more secure alternative to the Apple Watch, which uses NFC to enable payments through the device.
Alipay and Apple Pay may soon go head-to-head in China with their payments technologies. The market is a major target for innovators considering the saturation of mobile device usage in the country, though Apple is in the midst of obtaining regulatory clearance to begin operating in the nation. Some experts believe that Apple will not easily catch up to the leading position held by Alipay.
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