Apple Pay launch in China has been delayed as talks between Apple and UnionPay stall

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The launch of Apple Pay in China has been delayed due to the stalling of talks between Apple, Chinese banks and UnionPay. 

Apple was expected to bring Apple Pay support to China via UnionPay — the only company that handles interbank transactions in the country — with the iOS 8.3 update. However, iOS 8.3 — released last week — had no sign of support for UnionPay in China.

According to a UnionPay employee, the reason behind the delay is because the company’s talks with Apple have stalled. In addition, other sources of MarketWatch indicate that Apple is also yet to convince Chinese banks to support Apple Pay, whose approval are also needed to bring Apple Pay to the country.

Apple had released the first iOS 8.3 beta in February and the changelog noted that the final release of the OS would come with support for UnionPay in China. Various reports in the past have indicated in the past that Apple and Chinese banks are at loggerheads over the profit sharing ratio., with the latter not wanting to share a significant chunk of their profits with Apple.

[Via MarketWatch]