Huawei Technologies Co. has teamed up with state-run bank card processor UnionPay Co. to expand its mobile payment service in China, the Wall Street Journal reports.
The move intensifies the competition in the world’s largest smartphone market.
Huawei, China’s biggest smartphone maker by shipments, first launched the payment service in September, but its use then was confined to a limited number of shops and restaurants.
But with the partnership with UnionPay, the service called Huawei Pay can now be used by Huawei users across China.
UnionPay, which holds a monopoly on bank card payments in the country, is also a partner of Apple Inc., which launched Apple Pay in China last month.
Users of Huawei smartphones equipped with a fingerprint sensor as well as data transmission technology called near-field communication, or NFC, can download a Huawei Pay app to use the service, the Shenzhen-based company said.
Alipay, an electronic payment service affiliated with e-commerce giant Alibaba Group Holding Ltd., controls 70 percent of China’s mobile payment market as of the third quarter, followed by a rival service operated by social-network company Tencent Holdings Ltd., which accounts for 19 percent, the newspaper said, citing data from research firm iResearch.
In the third quarter of last year, China’s mobile payment transactions jumped 64 percent from a year earlier to 2.42 trillion yuan (US$373.2 billion), according to iResearch.
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