Apple and Alibaba are looking to enter into a partnership in China, which should greatly expand the roll out of Apple Pay in the country.
However, last month according to one of Alibaba’s Executive Chairman Jack Ma, both companies will first have to overcome a bunch of regulatory and technical regulations.
Mr. Ma said that Alibaba, the Chinese e-commerce giant that last month raised $25 billion in the world’s biggest-ever initial public offering, is interested in partnering with iPhone maker Apple in payments. Apple Chief Executive Tim Cook said at the same conference that he is going to meet with Mr. Ma to discuss partnerships, without specifying what kind.
Alibaba is the largest online retailer in China with an annual sales of over $240 billion in sales, which is greater than eBay and Amazon combined. Alibaba already has an affiliate payment — Alipay — that handles all of the company’s bulk online transactions. However, the company is looking to expand into handling payments at brick and mortar stores in China. Alibaba has a market share of nearly 80% in China and has more than 300 million registered users.
Tim Cook had revealed last month that bringing Apple Pay to China was on the top of his list. Apple recently launched its own payment service in the United States, which relies on the NFC chip found inside the iPhone 6 and iPhone 6 Plus. The payment service has already been a hit in the United States and received over a million activations in the first 72 hours of Apple Pay launch.[Via WSJ]