Apple Inc had partnered with China’s state-owned credit card processor, UnionPay on Thursday to launch the smartphone-based Apple Pay electronic payment system in China. Apple and China UnionPay had announced their plans to roll out the new Apple Payment service in early 2016 in China. The Cupertino, California-based iPhone maker reportedly announced a partnership with China UnionPay to bring the mobile payments platform into China.

According to the announcement following the companies finished tests and certification in harmony to Chinese financial standards, UnionPay cardholders will be able to make their payments directly through their iPhones, Apple Watches or iPads “as soon as early 2016.” Through this new Apple Payment system, UnionPay cardholders will be benefitted in a great way. This latest announcement by the Apple Inc abyss it against fortified Chinese rivals Alibaba Group Holding and Tencent Holdings.

Apple Pay to Launch in China, Likely to Rival Alibaba & Tencent

China UnionPay is a state-controlled consortium that has a monopoly on all yuan payment playing cards issued and used within the United States of America. This move of the tech giant Apple Inc. will see Apple Pay take on Tencent’s WeChat Payment and Alipay, the sovereign treasure of e-commerce giant Alibaba’s affiliate Ant Financial, the topmost opponent in China’s fast-growing online payments market.

However, Apple Pay is a fresh arrival (Little late) in a Chinese electronic payments market which was already dominated by Alipay, an arm of the e-commerce giant Alibaba Group. Alipay estimates for about 80 percent of online payment transactions. The system will allow UnionPay cardholders to make payments via Apple iPhones, Apple Watches and iPads. Apple and UnionPay said they have agreements with 15 Chinese banks to support the system.

“China is an extremely important market for Apple and with China UnionPay and support from 15 of China’s leading banks, users will soon have a convenient, private and secure payment experience,” said Eddy Cue, Apple senior vice president of internet software and services, in a statement.

In collaboration with China UnionPay, the technology giant, Apple now has a straight kinship to the country’s only bankcard network whose cards are accepted by 26 million merchants globally. Till today, there have been about 5 billion UnionPay cards issued.

Boom in Online Payment Transactions

China, which is the second-largest economy in the world is one of Apple’s largest markets for iPhone and tablet sales, but until now the firm has been kept away of its online payments market. With technology advancements, online transactions have been expanding all over the world in a rapid way.

Online transactions are growing in China, shoved by the proliferation of hundreds of millions of smartphones that are being used for everything from making payments to taxis and meals to purchasing commodities at High Street stores. China has accounted for 26.7% of the company’s $49.6 billion in sales in its most recent third quarter.

UnionPay said in a statement on Friday it also planned to tie up with Samsung Electronics Co Ltd’s payment system, Samsung Pay, which was launched earlier this year. Apple refused to announce how the company and UnionPay would distribute the costs and revenues of their venture.