Huawei is expanding its mobile payments service in China
Huawei partners with China UnionPay to expand access to Huawei Pay
Huawei Technologies, one of China’s largest manufacturers of mobile devices, will be expanding its mobile payments service in the country. This will place Huawei in direct competition with Apple, which recently brought its own payment service to China, as well as several other companies that have already established a strong lead in this market. The launch a new era of its service, Huawei has partnered with China UnionPay. Together, these organizations will offer a service called Huawei Pay.
Consumers showed favor for Huawei Pay during its testing phase
The payment service is not actually brand new. The service was first launched in September of last year on a pilot basis. It was only available for use in a limited number of stores and restaurants in China, but proved somewhat popular among consumers. Now, Huawei wants to expand the accessibility of this mobile payments service to more consumers, allowing them to make payments with their smartphones. China UnionPay will provide support for the service, allowing those with accounts with the bank to use Huawei Pay as they see fit.
Competition in China’s mobile commerce space is growing at a rapid rate
China’s mobile commerce space is already intensely competitive. The space is occupied by Alibaba, which is one of China’s largest e-commerce groups. The company currently holds a 70% market share in China’s mobile payments market. Tencent, another major Internet company in the country, holds a 19% market share in this market. Other companies are coming to China to find success in the growing mobile commerce market, but they may find very limited success due to the strong competition that exists within this space.
Consumers want secure mobile commerce solutions
Consumers see mobile payments as a convenient service, but many are still worried about the security of their personal information, which is why they avoid new payment services. Huawei Pay aims to allay consumer concerns with new security features. All transactions made through the service must be verified with a fingerprint scan, which will help protect consumer information from exploitation.