Apple Pay fees charges in China are less than half what the company demands from U.S. banks, Chinese website Caixin reports. The digital payment method launched in China last week after grueling negotiations over what Apple would be able to charge in a market already flooded with mobile payment methods. Sources with knowledge of the negotiations said Chinese banks are paying Apple around 0.07 percent of each transaction — substantially less than the 0.15 percent U.S. banks are rumored to pay. “Apple is tough, but so are the four banks,” one anonymous employee said. “The final agreement is a result of compromise from both sides.”
Apple eventually expanded the deal negotiated by China’s big four banks, launching with 19 partners across the country. “These 19 banks will pay Apple the fees at a discount, but banks that get on board later may not have the leverage anymore,” a person with the knowledge of the matter said. The company relies on UnionPay’s payment terminals and hopes that the ease of its near-field communication tap-to-pay method will set it apart from other mobile payment options offered by Alibaba and Tencent, which require opening an app and scanning a code. [via 9to5Mac]