Chinese handset maker ZTE has set up a partnership with China Unionpay, the country’s bank card payment system, to develop mobile payment services, reports Caixin Online.

Citing a source at ZTE, the report also said the company is set to release an NFC handset which will feature payment services.

The companies signed an agreement on 20 December to co-operate in mobile payment services and technologies, the source said. As well as NFC handsets, ZTE will work with China Unionpay to explore how to make payments through IPTV.

China Unionpay has emerged as an important player in the country’s nascent mobile payments market. Its QuickPass technology enables contactless payments to be used for point-of-sale transactions in participating retailers.

The payments firm is also working with the country’s two leading mobile operators – China Mobile and China Unicom – as well as HTC, another handset maker.

At last year’s GSMA NFC & Mobile Money Summit, China Mobile presented its deployment plans for NFC, including launch dates for new handsets.

The operator listed six brands that will supply it with NFC-based handsets, including ZTE. According to the presentation, China Mobile was due to launch an NFC-based handset from ZTE before the end of 2012.