Apple pay faces regulatory issues in China – Financial Institutions and Regulatory Authorities giving tough time
For most people, Apple Pay is just a payment transaction system which makes it easy for customers to make credit and debit card payments with their iPhones.
However, when entering the China market, there are certain things to keep in mind about China which make it different from other markets. First of all, China is ruled by the Chinese Communist Party, which rules and controls all of the big valves on the economy and society. The party is a political organization headed by the Central Committee, which controls policy and manages day-to-day affairs. The party owns and controls
- All of the major banks
- All of the mobile telecoms
- UnionPay, the leading credit card processor, which is larger than Visa and Mastercard
Apple pay allows iphone 6 users to go for transactions over NFC. Apple is facing dual issues, Commercial issues with Union pay and Regulation issues in China. Apple has been trying to involve Union pay system , but it seems to face few issues. This may be becoz of Union pay’s own NFC system of payment which allows China Mobile and China unicom subscribers to pay over NFC.
Another , Apple phones don’t comply fully with Regulation standards demanded by China Banks. In addition to this, China government may demand Apple to set up a Data server in China to avoid data leaks of Customers. China has been always on close watch when it comes to Any Data or News or Media. Apple is also considered to be a secret company when it comes to revealing of Data or any development, and so is China Government.
Lets hope Apple can sort out Transaction issues and soon enter its main consumer and competition Market.