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Here's How Apple Pay Really Got Into China

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According to a report by Apple Insider, Apple Inc. (NASDAQ: AAPL) had to make some concessions for its mobile payment service, Apple Pay, to enter China.

Apple Insider, citing a report from China-based media Caixin, noted that Apple slashed its payment processing fee per transaction to 0.07 percent in China - roughly half of the 0.15 percent Apple collects on U.S. transactions.

Meanwhile, Chinese merchants will also pay Apple 0.38 percent per transaction while U.S. merchants can sometimes pay as much as 2 percent in feels for a transaction.

Apple Insider added that Apple's high fees may have been a "major resistance point" when the company was initially eyeing its entry to the country in 2015.

Despite a compromise in pricing, Apple's entry to China could be considered a success as sign-up demand was so "intense" that the company's servers experienced issues.

Shares of Apple were trading lower by 0.70 percent at $96.20 Tuesday morning.

 

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