Chinese smartphone maker Xiaomi plans to launch its third-party mobile payment service, Xiaomi Pay, in China in Q3 or Q4 after completing tests with domestic banks, DigiTimes reported.
The vendor announced in April it was partnering with China’s dominant card-payment processor to develop a near field communication (NFC) payment service for the domestic market. It is working with state-owned UnionPay to gain scale using the association’s wide footprint of credit and debit cardholders across China.
The once fast-rising smartphone maker faces an increasingly competitive field in China dominated by Alipay, the mobile payment arm of e-commerce giant Alibaba, and Tencent’s Tenpay. Alipay claims it has 450 million subscribers in China.
Apple Pay launched in China in February after sealing a deal with UnionPay, and Samsung kicked off its payment service the next month, also in partnership with UnionPay. Huawei – the world’s third largest smartphone vendor – has joined the crowd with plans to offer a payment service for its smartphones and wearables.
Both Samsung and Huawei are cooperating with Alipay to expand their payment services in the mainland, but Xiaomi is unlikely to be able to to be a partner as its smartphones don’t support Alipay’s fingerprint payments, DigiTimes said.
Meanwhile, Xiaomi announced earlier in the week it is partnering with Indian payments company MobiKwik to integrate wallet functionality into its MIUI 8 OS. The feature will be available on all Xiaomi devices running on MIUI 8 and allow users to receive messages when bills are due and to make payments.