It still uses the same payment system as credit and debit cards, but through a contact-less connection using a “near field communication” (NFC) chip in the payment register and in the iPhone (this only works in the iPhone 6 and above). Apple Pay may reportedly have more success in the Chinese market than it has had in its domestic US market due to its major partner in China, UnionPay, an offspring of China’s central government, which holds a monopoly on bank card payments for domestic lenders. Also, while mobile payment rivals Alipay and Tenpay require a user to scan a barcode with the phones camera to pay, Apple Pay only requires that the user hover the phone over a payment terminal. The report also states that Apple’s iPhone 7 will be available at retail stores across China from September 8, but not until October 15.
Apple Pay may reportedly have more success in the Chinese market than it has had in its domestic US market due to its major partner in China, UnionPay, an offspring of China’s central government, which holds a monopoly on bank card payments for domestic lenders. Also, while mobile payment rivals Alipay and Tenpay require a user to scan a barcode with the phones camera to pay, Apple Pay only requires that the user hover the phone over a payment terminal. The report also states that Apple’s iPhone 7 will be available at retail stores across China from September 8, but not until October 15.