Apple And Samsung To Battle For Mobile Payment Supremacy In China Next Year
In 2016, two of the most high profile mobile payment systems existing today -- Apple Pay and Samsung Pay -- are set to duke it out Chinese market, widely considered the biggest smartphone market in the world right now. Indeed, both mobile giants have made it known just this week that they have separately inked partnerships with the China UnionPay bank which should allow their respective users based in China to start adding credit or debit cards to their mobile payment systems. Also, Apple and Samsung are targeting to launch their respective contactless modes of payment as early as in the first few months of next year as soon as they can pass certain testing and certification requirements set by China’s regulatory bodies.
As revealed by Eddy Cue, the head of Internet software and services at Apple, the company is looking forward to bringing the Apple Pay experience to Chinese iOS users, now that its mobile payment system has forged an alliance with China UnionPay, as well as acquired support from 15 of the leading banks in the country. As for Samsung, its global chief of Samsung Pay, Injong Rhee, it likewise expressed excitement with joining forces with China UnionPay. With regards to the specific terms and conditions of Apple’s and Samsung’s deal with China UnionPay, not details have yet been made public.
As far as mobile payment systems go, Apple Pay and Samsung Pay both offer similar setups but with notable differences. Apple’s contactless mode of payment makes use of near field communications (NFC) technology in allowing owners of iPhone 6, iPhone 6s, or Apple Watch devices to facilitate payment for items purchased while on the go. Samsung Pay, on the other hand, does not need NFC tech to function, and instead can do with any magnetic strip card reader, which should be a plus.
Needless to say, the Chinese market provides an interesting battlefield for the respective mobile payment systems of two of the biggest players in the world of mobile today. The pool of potential users in China is just massive, totaling 1.35 billion as of late. Furthermore, the rise of the middle class has smartphone vendors like Apple and Samsung scrambling to get these consumers to buy their respective smartphone offerings. In Apple’s case, it has managed to generate revenues of $12.5 billion out of sales of its iPhone devices in the Chinese market. Understandably, Apple wants more of the pie, and it believes its Apple Pay will help it get what it wants.