Talks between Apple and China’s state-owned credit and debit card processor UnionPay for a deal to launch Apple Pay services in that country have broken down, reports MarketWatch. The service was expected to debut in China as part of iOS 8.3, but was a no-show.
Citing sources close to ongoing talks, MarketWatch reports Apple and UnionPay have not yet reached an accord on how Apple Pay will roll out in China, a feature expected to debut with iOS 8.3 last week.
MarketWatch had previously reported Apple’s mobile payments service was slated to launch in March, but later reported that talks with UnionPay had stalled. As of today, a timeline for rollout does not exist, says the report.
A deal with UnionPay is basically a requirement for a Chinese Apple Pay rollout, as the company handles all interbank transactions on mainland China.
Apple was also reported to be in talks with eight major Chinese banks last year, but those discussions also stalled. In addition to technical issues, it is also believed that Apple’s fees are a stumbling block on the road to getting Chinese approval. In the U.S., Apple takes 0.15% of a 2% per-payment merchant fee, in addition to a half-cent per-transaction charge. Chinese banks are reluctant to allow Apple to wet its beak to that extent in China.
