Market Overview

Here's How Apple Pay Really Got Into China

Share:

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.

Posted-In: Apple Insider Apple Pay Apple Pay China Apple Pay FeesNews Rumors Markets Tech

 

Related Articles (AAPL)

View Comments and Join the Discussion!
Fastest Market News Application
You'll Hear It First On Pro
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

Are You Crazy To Keep Betting Against Apple?

Mid-Morning Market Update: Markets Open Lower; Home Depot Beats Q4 Estimates