Apple Pay All Set to Enter the Chinese Market
Lending: Technology Companies' New Focus
Registers a payment entity in Shanghai
According to a recent report from The Wall Street Journal, Apple (AAPL) is all set to expand its mobile payment platform Apple Pay to the Chinese market. The company recently registered a payment business entity in Shanghai.
The entity is reportedly called Apple Technology Service (Shanghai), registered in the city’s free trade zone. Recently, Apple has been quite aggressively expanding its Apple Pay service in international markets.
Apple was reportedly in negotiations with Canada’s top six banks to implement Apple Pay service in Canada, according to a report from The Wall Street Journal. Earlier this year, according to a Reuters report, Apple was reportedly in talks with Alibaba (BABA) and Chinese banks about implementing the Apple Pay service in China.
China is an important emerging market (EEM) for Apple. According to the chart above, Greater China is now Apple’s second-most important market after the United States for revenue. Though the slowing smartphone market in China could have implications for Apple, the mobile payments market is growing fast. Apple could leverage this fast-growing market and compensate for its losses in the smartphone market.
Many US merchants now supporting Apple Pay service
Apple continues to make good progress with its Apple Pay service in the United States as well. During its fiscal 2Q15 earnings conference call on April 27, Apple management noted that Best Buy (BBY) would start supporting Apple Pay service at its US retail outlets.
A few weeks back, Apple added a few more merchants to Apple Pay’s client list, including GameStop (GME) and T-Mobile (TMUS). Apple also brought 39 new banks and credit unions aboard Apple Pay, including the American Savings Bank and Citadel Federal Credit Union.
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