The Strategist

Apple Reached an Agreement with UnionPay

12/18/2015 - 14:56

Apple has signed a cooperation agreement with UnionPay, the largest in China payment system, within the planned launch Apple Pay in China in 2016. The agreements were signed with 15 Chinese banks, including the Agricultural Bank of China, Bank of China, China Construction Bank and ICBC.

Richard Bao via flickr
Richard Bao via flickr
Apple has signed an agreement with China's largest payment system UnionPay, as well as 15 Chinese banks as part of the planned launch of Chinese version of the electronic payment system Apple Pay.

Cooperation with Chinese UnionPay is a necessary step for deployment of the payment system in China.

"China is an extremely important market for Apple. With help of Chinese UnionPay and support of 15 leading banks in the country, users will soon get access to a convenient, private, and secure payment experience," - said senior vice president of Apple's software and services Eddy Cue.

Senior vice president of Internet services suggests that more than 5 billion users of UnionPay will join Apple Pay at the beginning of 2016. Now ,the company is busy with settlement of certification issues and testing needs to run Apple’s payment system.

The agreement with UnionPay will Apple provide with access to the 5 billion plastic cards in China and more than 150 other countries around the world. Among the banks - supporters Apple Pay are Agricultural Bank of China, Bank of China, China Construction Bank and ICBC.

According to Bloomberg, South Korea's Samsung Electronics has also concluded an agreement with UnionPay and is planing to introduce its own system of electronic payments in China next year.

Earlier, the Beijing company UnionPay together with 20 commercial banks introduced a new service of mobile payments QuickPass.

The new service supports contactless payment technologies NFC, HCE, TSM and Token. After installing the application, users can use their smartphones make one-touch" payments "on any POS-terminals marked QuickPass. Also available secure online payment via internet banking system UnionPay (UPOP), not requiring SMS-verification.

Prior to QuickPass service, UnionPay, in collaboration with telecom operators and manufacturers of mobile gadgets, has successfully launched a number of mobile payment products and services, including SWP-SIM, integrated solution eSE and portable payment devices.

QuickPass mobile payments services is already available in more than 10 thousand terminals of 25 franchise networks in mainland China, including Carrefour, McDonald's, Watsons, FamilyMart and COSTA.