Apple Inc. (NASDAQ:AAPL) is slated to launch its mobile payment service Apple Pay in Hong Kong in the next few weeks.
Numerous banks in Hong Kong have announced that they will support Apple’s digital payment solution. The company released a few details on its Hong Kong website where it stated that card services from American Express Company (NYSE:AXP), Visa Inc (NYSE:V) and Mastercard Inc (NYSE:MA) will be the major credit card platforms for the service in Hong Kong. Some of the banks supporting Apple Pay include DBS, BOC credit card, Standard Chartered, HSBC, Bank of Asia and Hang Seng Bank.
Apple Pay will also be supported by most of the popular local stores there. Some of them include the Sasa beauty shop, Welcome supermarket, Mannings health retailer, and a shop known as Lane Crawford. McDonald’s Corporation (NYSE:MCD) restaurants will also support the mobile payment service in Hong Kong together with a few other merchants. Apple believes that its mobile payment service is the best replacement for cards because it does not store card numbers on Apple’s servers and the handset itself. The company therefore boasts that its service is more secure and offers more convenience.
Hong Kong is one of the cities that have been rapidly adopting contactless payments. Research released by Visa states that one out of every ten Visa transactions in Hong Kong is a Visa PayWave transaction and the card company expects contactless payments to continue being adopted widely. Apple Pay will also make it easier for online shoppers.
Mobile payments are not so popular in Hong Kong especially because of the Octopus smart card which is widely used as a payment method for transportation. The card is also accepted by most of the retailers in the city. Such markets pose a threat to the adoption of Apple Pay but the company is confident that the support it will receive from banks and merchants will be vital for the mobile payments service to gain traction.