Mobile
17:16, 22-Mar-2018
Apple physical stores now accept Alipay
["china","north america"]
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Physical Apple Stores now accept Alipay – making it the first third-party payment platform Apple accepts for both online and offline purchases.
China’s largest mobile payment applications, Alipay and WeChat Pay have made available for Apple online purchases since two years ago. And the new move is seen as a way to capture more Chinese customers.
Apple's iPhone sales in China dropped 5 percent in 2017 compared to the previous year despite the releases of three different models in the last quarter. But still, one-fifth of Apple's revenue comes from China.
In addition, 10 percent of its brick-and-mortar stores are in China – only second to its home market, the US and the two largest mobile payment platforms combined almost cover the entire Chinese population. Apple's addition of Alipay is interpreted as a classic "when in Rome, do as the Romans do".
"Alipay is widely used. People now hardly take cash with them. I sometimes use Apple Pay, but it is not as convenient,” said one consumer,
"The addition of Alipay can be a contributing factor for me to shop at Apple. People are so used to mobile payments like Alipay now,” said another consumer.
A consumer showing Alipay's scan code. /CGTN Photo
A consumer showing Alipay's scan code. /CGTN Photo
Liang Yaguang, the consumer insight director of Kantar Worldpanel told CGTN that Apple has been showing signs to keep close contacts with Chinese consumers and learn more about Chinese shopper’s behaviors.
"Apple Pay only accounts for about 4 percent of the entire Chinese mobile payment market. In that sense, China's third-party platforms are not really head-to-head competing with Apple Pay, but cash and bank cards. It is also possible that Apple may start accepting WeChat Pay in store soon," Liang said so when asked about the competition between Apple’s own Apple Pay and Chinese third-party payment apps.
In exchange, the Alipay App has also opened a dedicated section for Apple App Store purchases – a partnership seen to help drive Apple sales, while also benefiting Alipay.