It’s rumoured that Xiaomi plans to launch a payments service in China and the vendor has announced today that it is partnering with China UnionPay over the service. There’s no mention of a timeframe, but CEO Lei Jun told Xinhua that the service will be an NFC-based solution.
It’s good for Xiaomi to come up with its own payments service, as the vendor sells a series of lifestyle products in addition to phones and tablets. Its latest phones — the Redmi Note 3 and the Mi5 — offer fingerprint sensors that can be used to authenticate payments. The vendor has teamed up with NXP earlier this year to enable mobile payments using the Mi 5 at public transit stations across the country.
However, Xiaomi will not find it easy in this segment, as it will not only have to go up against local rivals like Alibaba and Tencent, but will also compete with Samsung Pay and Apple Pay in the country.