Apple Pay advances slowly: Apple competes with Alipay for traffic payment

- Apr 02, 2018-

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If the company has just pushed iOS 11.3 system, the biggest highlight is to join the "fast traffic card" function, can turn the iPhone and Apple Watch seconds into a traffic card.

Previously, the subway station in Shanghai has begun to popularize Alipay's "two-dimensional code" station, "two-dimensional code" to replace the subway transport card.

The traffic card function introduced by Apple is based on Near Field Payment (NFC) technology. With this technology, payment can be realized simply by using a mobile phone close to the device, and the two-dimensional code no longer need to be called from the App application.

The premise that Apple opens the NFC interface is to use Apple to pay Apple Pay. The opening of the Metro App to Shanghai and Beijing is an important measure for Apple’s large-scale promotion of Apple Pay in China. Before that, Apple had barely opened an NFC interface to any third party.

As early as two years ago, Apple’s Apple Pay mobile payment service landed in China, but NFC technology has not been developed on a large scale in China. Although UnionPay has flash payment, Alipay's App can also see NFC applications. However, not all POS machines support NFC, nor do all phones support NFC. More importantly, users are accustomed to using them in China. More users of the code. Therefore, only the UnionPay Flash payment will be used when large-scale subsidies are provided.

The advancement of Apple Pay in China will be a slow process, and given that Alipay has already taken the lead in traffic payments, Apple iOS update users are limited in size, so whether Apple can cover more Chinese Apple Pay by competing for transport payment portals. It is still difficult for users to conclude.

Shen Zheyi, research director of Gartner, told the author: “The bus card is a high-frequency application, but if Apple is to compete for the entrance to the payment, it has already missed it. The time is too late and the intensity is weak. Now it’s time to point it out. Alipay also has a 10% discount, and Apple has more chances to win. It needs to be broken in every city.”

Whether it is Apple or Alipay, in fact, there are UnionPay figures. Shen Zheyi predicted that the future does not rule out that UnionPay and Alipay also support NFC payments on the subway.

Android manufacturers such as Samsung and Huawei have successively supported NFC traffic cards. However, the way they cooperate with Shanghai Rail is to implant special-shaped cards instead of the current bus cards. Therefore, the development fee will be higher and it will cost 29 yuan. It can't be refunded. Only one device can be bound. This time, Apple got authorization directly from Shanghai Rail. The virtual traffic card on the iPhone is the same as the traffic card purchased on the counter. The price is 20 yuan. It supports refunds, and it can bind iCloud accounts and migrate to. In other mobile devices. However, since the NFC technology can only read and cannot write, it cannot recharge the physical card through the iPhone.

Mobile payments are a major trend in the world. Technology giants are building payment ecosystems based on their own ecosystem. In February of this year, Google also launched a new "Google Payments" app that eliminated past Android payments and Google Wallet tools. This makes Google more consistent with Apple, Samsung and other competitors, helping consumers to better understand and accept mobile payments.

Enterprises of traditional payment solutions are also actively embracing innovative payments. In March of this year, UnionPay and ACI, the global real-time electronic payment and banking solution provider, announced their cooperation in the areas of UnionPay card acceptance, card issuance and innovative payment and provided electronic payment services for more than 5,000 institutions worldwide.

Just as China’s Alipay and Apple’s payments have to be tied to UnionPay cards, in developed countries such as Europe and the United States, mobile payments also rely on bank cards to achieve payment. Therefore, in countries that rely less on mobile phones, users will find it easier to pay directly with credit cards than with mobile phones.