Alibaba’s finance arm and fast-growing smartphone maker Xiaomi said today they are partnering to allow payments via wearable devices.
The system works by linking Alibaba’s Alipay Wallet mobile app with Xiaomi’s Mi Band smart fitness bracelet to enable users to make payments without the need for passwords. The encrypted link will avoid potential security weaknesses of NFC, which has been criticised for potential vulnerability, Reuters reported.
A subsidiary of Ant Financial, Alipay is China’s largest online payment service. In the first 10 months of last year, it said more than half of all transactions it handled were through mobile phones.
Reuters said the payment system will work on the current version of Alipay Wallet for Google’s Android operating system and the next version will be compatible with Apple’s iOS.