Apple Pay can't get off the ground in China as iOS 8.3 fails to add support for China UnionPay

While Apple Pay has created interest in mobile payment services in the U.S., in China the feature can't get started. That is because iOS still does not support China UnionPay. That is the only firm that handles interbank payments in the country. Software developers were told in February when the iOS 8.3 beta was seeded, that it would include support for UnionPay. This never happened and an anonymous employee for the Chinese bank said that there are no agreements in place with Apple. He also adds that there is no timetable as to when an agreement will be reached.

For its part, Apple was hoping to have a deal in place by last month that would allow it to launch Apple Pay in China. Sources say that Apple is having problems in its dealings with UnionPay. But that isn't the only Chinese banking institution to stonewall Apple. Sources say that Apple approached eight banks in the country and the talks failed miserably. One of the banks, Industrial & Commercial Bank of China, doesn't want to have anything to do with Apple. Another issue between Apple and Chinese banks deals with Apple's take of .15% of the 2% that credit card companies get paid from the merchants who accept their cards. The banks in China say that this is too steep a price to pay.

Another country where Apple is having problems getting Apple Pay started is in Britain. The tech titan had hoped to get the service started in the first half of this year, but the British launch could be delayed until the second half of the year. Besides Asia, Apple is looking to expand its mobile payment service to Canada, Europe, the Middle East, India and Africa.

source: Marketwatch via AppleInsider