Apple reaches deal with UnionPay to bring Apple Pay to China

Apple has struck a preliminary agreement to use UnionPay’s point-of-sales network to bring Apple Pay to China, Bloomberg reports. Sources familiar with the negotiations said UnionPay, China’s largest payment network, aims to introduce Apple Pay as soon as next year, but noted that the two companies haven’t signed firm agreements with Chinese banks on linking local bank cards to the service. That information seems to conflict with yesterday’s report that Apple had reached deals with China’s four largest state-run banks to link Apple Pay with local bank accounts, with sources now saying some banks have lingering concerns about the fees charged by Apple Pay and the low number of users the service has worldwide. Apple Pay takes in 0.15 percent of each purchase made through its system — which comes out of the 2 percent fee paid by retailers in the U.S. — but that rate has proven too high in China, where the total fee paid by some retailers is only 0.38 percent.

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