Apple pay the road to China is not smooth, there are problems to be solved

Apple's Halo pay the road to China is not smooth, the time to push again, the rumored partner from UnionPay to pay the treasure and return to UnionPay, is twists.

Apple and China UnionPay have reached an agreement to formally launch the Chinese version of Apple Pay on April 28, according to Kapronasia, an Asian financial consultancy.

However, Tencent Science and technology learned that, as Apple Watch will be in China starting on April 28, watch itself with Apple Pay, Apple Watches on sale, although Apple Pay also entered the Chinese market, But whether it can be put into use also depends on the progress of Apple and China in paying the partner UnionPay, and it is not yet clear exactly how the Apple Watch will be used in China.

Then, if Apple and UnionPay work together to solve the problem of use. There is still a question on the user side, is the Chinese market ready to accept such a product?

A retail shopkeeper claiming to be super fruit powder said to Tencent technology: "Compared with Apple's mobile phone users are now in the domestic use of Andro or most, more crucially, micro-credit and Alipay mobile payment is very convenient, consumers have a habit, I will not use Apple Pay to pay. ”

It seems Apple Pay is not yet replicating the deterrent effect of the iphone on homegrown handsets. A third party mobile payment founder of Tencent Technology said: "Domestic mobile payment companies do not have any fear of Apple Watch, because the professional thing is still to be given to professional people to do." ”

NFC: Apple vs Google + Samsung

Apple has high hopes for pay.

In the early hours of September 10, 2014, Apple CEO Cook said the survey data showed annual credit card consumption of 12 billion U.S. dollars per day with up to 200 million U.S. dollars in credit card transfers, but credit card payment process is very cumbersome.

At the press conference, Cook scoffed at all the previous moves, and it seemed to him that Apple's NFC-based pay could simply "lean" on a terminal reader and that the entire payment process was simple.

The strategy, published in the industry, is believed to be a powerful riposte to Samsung and Google's NFC technology.

Globally, NFC entered the first commercial phase in the US and Europe, and in 2010 Google began to add NFC to Android and looked forward to promoting NFC payments via Google's wallet, but not in the best of terms. Data show that in 2013, nearly 40% of American mobile-phone payers had used NFC to pay, but eventually they opted to return to more familiar two-dimensional-code payments.

A number of giants before and after the layout of NFC field, in the fast-money CEO Guoguang seems to pay is diversified, different scenarios have different payment methods: "But in the mobile payment field, near-field will become the trend, the future of NFC payment will be dominant position." ”

Apple pay is known as a "rich second-generation" compared to a few supporters of Google Wallet. By March 2015, more than 2,500 banks in the United States had announced support for Apple Pay, while more than 700,000 had accepted Apple Pay, according to Apple, where more banks, businesses and other apps were added to Apple's watch every day.

Subsequently, Apple Pay began using near-field communications technology, users can use the iphone to make contact-free payment, eliminating the credit card payment steps. The user's credit card, debit card information is stored in the mobile phone, the user will put his finger on the phone's fingerprint identification sensor, the phone near the reader, that is, to complete the payment.

Strong Apple has put pressure on Google and Samsung, the two giant companies that unveiled the Android Pay and Samsung Pay this year MWC2015. Google plans to build a loose alliance of equipment makers, mobile operators, banks and payment networks to promote a new Google Wallet payment service, according to news. In order to achieve this goal, Google will even share more revenue with some companies.

Negative

Despite all the innate advantages, the development of Apple Pay is not a smooth road. Shortly after Apple used near-field communication technology, there were reports that criminals used Apple's mobile payment verification system loophole to borrow stolen credit card information and use Apple to pay for trading scams.

In addition, foreign media have pointed out that the current continuous use of Apple Pay phone kv plus handset users not even 10%.

A survey by adoption and Behavior, a City regulator, found that only 6% of iphone 6 users habitually used Apple's Pay payment service as of this month, compared with 5% progress of 1% last November. At the same time, the rate that has been tried but not continued to be used has increased from 4% to 9%, meaning that at least 85% of users have not used Apple Pay for half a year since the IPhone 6 went public.

And Apple's former bank allies are showing signs of discontent. When Apple officially released Apple Pay, the big banks that announced the alliance included JPMorgan Chase, Bank of America, American Express, and Wells Fargo, Citigroup and first capital. "It's the future," Marian Lake, chief financial officer at JPMorgan, said at the time. So it's great to ally with Apple!

But 6 months later, some banks in the United States have privately complained that Apple pay may not be as good as they thought. "Apple's pay fraud is just like weeds, and banks are not able to tell their enemies," says one person in the US payments field. But at present no one dares to say loudly that the emperor is naked. ”

Banks that are privately complaining are still not rejecting Apple's demands, and some bank executives have privately said they may be squeezed out of their allies if they ask too much of Apple. A few weeks after Apple's pay, including Barclays, Navy, PNC, USAA and Bank of America became Apple's partners.

On the issue of fraud, Apple said in a statement that the problem comes from banks, "in the set-up phase, Apple Pay needs banks to verify each credit card, and the bank then decides and approves whether the credit card can be added to Apple Pay." Banks have been evaluating and improving their approval processes, which vary from one bank to another. ”

Can the Apple Watch save the pay?

Apple Watch recently, the Chinese market has become one of the first in the market, micro-letter also become the official app. Compared to the high price and endurance of the smart hardware itself, its random-carrying Apple Pay to the domestic mobile payment market changes are more interesting.

According to Apple's presentation at the press conference, the user will simply move the Apple Watch to the location near the payment terminal, and the application will automatically open to help the user to complete the payment. This solves the problem when users need to pull out the iPhone when they pay, and unlock the door to pay.

Apple Pay will also enter the domestic market with Apple Watch, if not unexpectedly. According to the industry, currently with the Apple Pay the most suitable partner is China UnionPay.

The personage to Tencent Science and technology explanation, this is because under the current IoT technology condition, the offline purchase still cannot realize the user equipment single end to pay, thus guarantees the user to use the payment platform and the merchant POS machine Unicom is extremely crucial.

At present, UnionPay as the largest POS machine manufacturer, as of last year has more than 30 million ordinary POS machines and 3.6 million support flash POS terminals. This one-port monopoly advantage coincides with the formation of Apple Pay binding, is the micro-letter wallet, Alipay wallet and other third-party platforms do not have. Once Apple Pay is allowed to enter the Chinese market on policy, there is no more choice and there has to be a massive contact with UnionPay's pos.

UnionPay has been ready for technical preparation. UnionPay related to the relevant person in charge of Tencent technology to express the current "flash" (Quick Pass) on behalf of UnionPay's Non-contact payment products and applications. Users to buy goods or services, confirm the corresponding amount, with the "flash" function of the financial IC card or UnionPay mobile payment products, in support of the "flash pay" of the non-contact payment terminals, a easy flick can quickly complete payment. In general, a single sum of not more than 1000 yuan, do not need to enter a password and signature.

UnionPay aspects of Tencent Technology, the current financial IC card has been issued more than 1 billion, the basic have "flash" function. At present, the national "flash pay" reception terminal 4 million, accounting for the national UnionPay card processing terminal total proportion reached 1/4.

Apple Pay potential N opponents

Apple Watch a high-profile listing, outside the Union UnionPay technology escort, it looks like Apple Pay will be in China, but really?

Apple Pay was able to support China UnionPay in a beta release last year, but the news was quickly deleted by Apple's 8.3. Previously, it has been reported that the original Apple and China UnionPay in March this year to reach an agreement, but has been suspended.

Last October, Mr. Cook disclosed that he would discuss with Jack Ma (Weibo) The cooperation between Apple Pay and Alipay, but then there was no more news.

But UnionPay and Alipay both on Tencent Technology said, and Apple's cooperation, there is no information disclosed, the details need to wait for the announcement.

But the latest news shows that Apple Pay to enter China's time is not far, from the Apple community website Macx, news from the Asian financial market research and consultancy Kapronasia Official report that the company has completed with China UnionPay on the Apple Pay project cooperation negotiations , two companies announced the launch of the Apple Pay service on April 28.

But the once-invincible US technology giant still faces many challenges in terms of payment in the Chinese market:

First, domestic mobile phone manufacturers

There is news that the domestic mobile phone millet is mobile payment field layout, the relevant person responsible for Tencent Technology said: "The current MIUI team is testing Apple Pay business, but the specific online time is not yet confirmed." “

In January this year, Kantar Worldpanelcomtech, a market research agency, released the latest report on the global mobile operating system, which showed that the market share of iOS in China was still ahead of the 18.1%,android, with a market share of 80.4%. Apparently, Apple has limited coverage on mobile devices, and news shows that domestic handset makers such as Huawei, the enchantment and Lenovo are planning to launch similar mobile payments.

The mobile payment platform represented by micro-letter and Alipay

According to iresearch, China's third-party mobile payment market was 5,992,470,000,000 yuan in 2014, up 391.3% per cent year-on-year. In the face of such a large market, the domestic internet giant has already begun to beach mobile payment field.

Alipay, as the payment giant for the PC era, has a long layout for mobile payments, but Tencent also launched a reverse attack by "micro-letter Red envelopes". Both sides in the taxi software is also scrambling to invest heavily.

According to third party data, the current micro-credit and Alipay has been in the mobile payment market share of more than 90%.

Iii. Banks

As mentioned earlier, Apple talks with banks in the United States are very strong, and Apple's pay fees are not to the merchant, but to the Bank deduct Commission.

According to the introduction of UnionPay, the current level of the POS charging Commission is not high, such as Apple also in the proportion of the United States to collect commissions, which means that about 30% of the bank's income will be the apple split away.

In addition to these major competitors, the other is not to be overlooked is the problem of user habits. Micro-credit and Alipay have nurtured the user's mobile payment habits through the taxi war, and the willingness of these users to accept NFC technology is questionable.

Guoguang to Tencent Science and Technology said: "To develop near-field payment, the user habits of the training is a relatively large challenge, for domestic users also need a process, accept the environment, application scenarios and other mature need time, so near-field pay short-term not optimistic but promising." “

In addition, policy factors are the main factor Apple has to consider. According to the financial industry, the current government on foreign investment to build financial platform is very strict regulation, Apple and the government's regulatory authorities to reach a consensus is hard to say.

There are mobile payment companies in charge of Tencent Technology, said earlier, ebay, Instagram and other in China encounter various acclimatized, Apple Pay into China is likely to encounter the same problem: "Apple Pay the biggest problem in the ground, although UnionPay may become Apple Pay's partner, but UnionPay itself is doing mobile payments, whether the cake is willing to give Apple is still doubtful.

And in Lakara chairman Suntaujan seems to pay is a professional life: "Pay the industry the older the more valuable, the longer the business, optimization and risk-resistant ability long, not that there is a lot of money, many users of enterprises can casually enter this field." ”