Apple Pay's future of attracting money across the sea is uncertain, and Alibaba Terminal is the key

Soon after the launch of the new iPhone, Apple Pay, a payment system, attracted widespread attention from the public. The three major card issuers and many banks in the United States expressed their support, believing that Apple Pay will have a large market in the future. But soon after, Walmart, the world's largest retailer, announced that it would refuse to adopt the system, setting off a wave of boycotts in the US retail industry. Apple could only express its helplessness. Just when Apple was frustrated and at a loss, Alibaba Group on the other side of the ocean proposed cooperation intentions on Apple Pay. So if Apple Pay wants to succeed in its journey across the ocean, what kind of dock Alibaba Group provides will be the key to success.

  Apple Pay is not popular in the US retail industry, and fees are a roadblock

Apple Pay, launched by Apple, is a mobile payment function based on NFC (near field payment). Soon after Apple Pay was launched, Apple started cooperation with MasterCard, Visa and six US banks and achieved certain success. But soon after, Walmart, a US retail giant, made it clear that it would not join Apple Pay. CVS and Rite Aid, the second and third largest drugstore chains in the US that have a cooperative relationship with Walmart, directly closed the NFC system, thus doubling the resistance of Apple Pay in the retail industry.

Walmart's response is that Apple Pay uses the traditional credit card payment fee structure, and when users consume, merchants need to pay more fees to the bank. The payment application CurrentC, which will be launched by Walmart and the MCX alliance next year, links the payment card issued by the retailer with the consumer's bank account. Therefore, the fees paid by merchants will be lower.

Walmart and the MCX Alliance's non-cooperation has increased the resistance to the development of Apple Pay in the U.S. Apple CEO Cook had to admit that Apple Pay has encountered problems in gaining popularity among U.S. retailers.

How will Alibaba respond to the cooperation with Alibaba?

When Apple Pay was blocked from promoting in the United States, Alibaba Group Chairman Jack Ma expressed his intention to cooperate with Apple Pay at the WSJD Live Global Technology Conference. On Tuesday, Alibaba Vice Chairman Joseph Tsai also revealed that Alibaba's Ant Financial will provide backend services for the Apple Pay payment system and allow iPhone users to complete transactions through Apple Pay using funds in their Alipay accounts.

The cooperation between Apple and Alibaba will give Apple a ticket to enter the Chinese market. Because in order to carry out payment business in China, it is necessary to obtain a third-party payment license. Alibaba Group has Alipay, the world's third largest payment business, so the license is naturally not a problem.

Although Apple has achieved great success with mobile terminals such as the iPhone 6, it still needs cooperation if it wants to promote Apple Pay in China. If Apple Pay is to succeed in attracting money in China, its partners must be very strong and fully supportive.

From the information disclosed by Cai Chongxin, it can be seen that Alibaba will fully support this cooperation. It not only provides Apple Pay with a legal way to enter the Chinese financial market, but also provides an Alipay platform with a wide range of applications. Apple can smoothly bring Apple Pay into the Chinese market through this channel.

In fact, Alibaba Group is also taking a big risk by introducing Apple Pay. Alipay has a considerable share in China's online payment field, and the introduction of Apple Pay is likely to divert Alipay users. But compared with the market share of Apple's IOS8 mobile payment in the future, this is not worth mentioning. What Alibaba has brought in is not an enemy that diverts users, but a new mobile terminal payment market.

Moreover, cooperation with Apple will also help Alibaba gain a larger share of the US market. Alipay will also go international, and Kohls, Macys, and Dillards in the US will all accept Alipay purchases. This is definitely not comparable to diverting users.

In general, Alibaba, as a huge platform, is a reliable gateway for Apple Pay to enter the Chinese market.

  Apple Pay enters China: Mobile payments will challenge traditional

In China's online payment market, PC payment has always been the traditional way and the mainstream. Although WeChat Pay and online banking are also promoting mobile payment, it has always been tepid. Apple's Apple Pay, as a new mobile terminal service, is likely to challenge the traditional PC payment market with its strong mobile terminal market. Therefore, in the cooperation between Alibaba Group and Apple on Apple Pay, although Alibaba has invested a lot, the market prospects are broad and can provide greater profit space for both parties.

Apple Pay's success in the mobile market depends on the amount of capital invested by Alibaba. Although Apple has encountered strong resistance from the retail industry in the United States, it has the full support of China's largest e-commerce company on the other side of the ocean. Apple Pay has a bright future in China because it has a huge platform with full investment.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.