Apple struggling to close a deal in China for Apple Pay
Despite the iOS 8.3 beta 1 support for UnionPay, which is the government run debit and credit card operator, Apple's relationship with the outfit is not as close as it would seem to be. Talks between Apple and UnionPay have hit a rough patch. Like Apple Pay, UnionPay relies on NFC for its mobile payment system in China, which works with a smartphone loaded with a special China Mobile SIM card. Regulators have steered clear of the negotiations between Apple and UnionPay, which both had hoped would be finished by March. The company has the only NFC payments network in China.
Apple could decide to strike a deal in China with Alibaba's Alipay app. The latter uses a QR code and a fingerprint password developed by Alibaba and Apple to make a payment. Alipay still uses UnionPay's NFC network to complete a transaction. No matter how it is done, Apple Pay is destined to get into China as the mobile payment system expands from the U.S. to Canada and beyond.
source: MarketWatch via MacRumors