Apple Pay is all set to be launched in China this week but it will face tough competition from the two market ruling mobile payment systems Tencent’s WeChat Payment and Ant Financial’s AliPay.
Apple Pay will be available for the customers of Industrial and Commercial Bank of China (ICBC) from Thursday. The ICBC is China’s largest lender by assets. As per the Reuters, the bank representatives disclosed this news via social media posts. However, Apple, denied to make any comments on the banks announcement.
Apple China’s website revealed that there would be another 19 Chinese lenders, besides ICBC, who would aid as official partners of Apple Pay. The local media speaks of two additional lenders who would join ICBC on Thursday. A Chinese radio station stated on its website that the China Construction Bank Corp. and China Guangfa Bank Co Ltd. Will also offer Apple’s mobile payment service on the same day.
Having the biggest smartphone market in the world, China will be the fifth country to have Apple Pay.
According to Reuters, the biggest problem of Apple in China will be “how to compete with the dominant and well-established players, serving shoppers that are well used to payfor goods and services by their handsets.” This move can be perceived as Apple’s attempt to take on WeChat and AliPay.
After its introduction of digital red envelope function WeChat has gained its adhesion in China. It administered 32.1 billion red envelopers via the WeChat platform in the Chinese Lunar New Year, the company announced that they were sent by 516 million users in the country. Whereas 400 million users gave 800 million yuan worth red envelopes during the Spring Gala this year, in Alipay.
The digital red envelope function in China has grown by 903 percent since the last Chinese New Year. With two leading competitors in the market Apple needs figure out a good feature to redirect the attention of the user’s.