China could be next market for Apple Pay

Details: James Barton; Category: Mobile Finance; 22 September 2015; 5867 views

Apple has reportedly registered an entity in the Shanghai pilot free-trade zone, which could allow it to offer Apple Pay services.

According to its listing in the Shanghai government’s company registration database, the newly-registered Apple Technology Services provides technical consulting and systems integration with in the mobile payments space.

It has a registered capital of $13.4 million but just one investor – Apple’s Singaporean unit, Apple South Asia Pte. Ltd. Gary Joseph Wipfler – the VP and corporate treasurer of Apple – is the new entity’s chairman.

China has been strongly mooted as a potential market for Apple Pay, although several major firms are considering launching payments services in the market – including rival Samsung. Apple CEO Tim Cook said in May that the firm “very much want[s] to get Apple Pay in China”, and the firm has held discussions with both local banks and e-commerce firms such as Alibaba regarding the service.

Apple Pay is currently only available in the US and the UK. Launching in other markets would require approval from financial regulators, including China’s central bank.

Mobile payments are gaining significant traction in Asia, with Alibaba’s Alipay service attracting 400 million users as of June. Mobile wallets linked to bank accounts are cited as a major factor in this rise, along with new policies regarding financial inclusion.