both the services want a big pie in the world biggest smartphone arena and intend to bring their service in the first quarter of 2016 although it is speculated that they will launch before Chinese new year. The deal with the UnionPay bank will enable the customer to load up their credit or debit card in the mobile Payment service app and Pay at a compatible terminal with their smartphone making the plastic card sit in their wallet comfortably.
“China is an extremely important market for Apple, and with China UnionPay and support from 15 of China’s leading banks, users will soon have a convenient, private and secure Payment experience for the Apple Pay,” Eddy Cue, Apple’s head of Internet software and services, said in a statement.
Within few hours, came these words from samsung
“The collaboration with China UnionPay, coupled with the support from major UnionPay partner banks in China, will bring this secure and easy-to-use mobile Payment solution to more Samsung mobile users,”
With a population of 1.35 billion, china could be the single biggest market for any mobile Payment service and if executed right, Apple Pay and Samsung Pay could be the right service.
Right now, the scaled is not tipped towards any service. Samsung Pay is convenient and could work with any credit card terminal thanks to magnetic secure transmission tech(MST). But the compatible phones are very limited and the number in which these phones are used by Chinese people is weak.
On the other hands, iPhone are being used in millions but to use the Apple Pay, retailers will have to install a separate NFC terminal. It is highly unlikely that the store around your corner will install this NFC terminal.
Stay tuned for more info