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| Shopping tech firm Powa in major Chinese joint venture | Shopping tech firm Powa in major Chinese joint venture |
| (about 17 hours later) | |
| Powa Technologies, a British e-commerce tech firm, has formed a "strategic alliance" with China's biggest payments processor, UnionPay Network Payments. | |
| The joint venture could generate $5bn (£3.3bn) in revenues over three years, said Powa's boss, Dan Wagner. | |
| UnionPay Network Payments is owned by China UnionPay, which has 4.5 billion credit and debit card users worldwide. | |
| Powa's technology enables shoppers to pay for goods quickly in-store and online using their smartphones. | Powa's technology enables shoppers to pay for goods quickly in-store and online using their smartphones. |
| "This is undoubtedly a huge deal for Powa," said electronic payments expert, Dave Birch of Hyperion Consulting. | "This is undoubtedly a huge deal for Powa," said electronic payments expert, Dave Birch of Hyperion Consulting. |
| The joint venture, PowaTag UnionPay, will launch first in Guangdong Province, targeting 400,000 retailers, the company says, before rolling out to one million by the end of 2016. | The joint venture, PowaTag UnionPay, will launch first in Guangdong Province, targeting 400,000 retailers, the company says, before rolling out to one million by the end of 2016. |
| "We have a target to reach at least 50 million consumers regularly using the platform within one year from launch," said PowaTag UnionPay's chairman, Mr Hu Jinxiong. | "We have a target to reach at least 50 million consumers regularly using the platform within one year from launch," said PowaTag UnionPay's chairman, Mr Hu Jinxiong. |
| China's merchants - there are six million in total - will pay about 13p per transaction to the joint venture for access to the technology, said Mr Wagner. | China's merchants - there are six million in total - will pay about 13p per transaction to the joint venture for access to the technology, said Mr Wagner. |
| 'We've trumped Apple Pay' | 'We've trumped Apple Pay' |
| The PowaTag system relies on digital tags - quick response (QR) codes - that can be attached to physical goods or inserted into self-service checkout screens, emails, websites, posters, images - even the audio from TV ads. | The PowaTag system relies on digital tags - quick response (QR) codes - that can be attached to physical goods or inserted into self-service checkout screens, emails, websites, posters, images - even the audio from TV ads. |
| Wherever Chinese shoppers see the PowaTag UnionPay symbol they will be able to buy products by scanning them with their phones and tapping the "buy now" button, the company says. | Wherever Chinese shoppers see the PowaTag UnionPay symbol they will be able to buy products by scanning them with their phones and tapping the "buy now" button, the company says. |
| US retail giant Walmart recently launched a similar quick pay system for mobiles in its stores. | US retail giant Walmart recently launched a similar quick pay system for mobiles in its stores. |
| China's Commerce Department says the "online to offline" market, whereby shoppers search for products online then complete the purchase in-store, grew 80% in the first half of 2015 and is worth about £31bn ($47bn). | China's Commerce Department says the "online to offline" market, whereby shoppers search for products online then complete the purchase in-store, grew 80% in the first half of 2015 and is worth about £31bn ($47bn). |
| "Why did China UnionPay decide to partner with a little British technology company?" said Mr Wagner. "We've trumped ApplePay and the rest of the world here." | "Why did China UnionPay decide to partner with a little British technology company?" said Mr Wagner. "We've trumped ApplePay and the rest of the world here." |
| 'Tap-and-go' | 'Tap-and-go' |
| State-owned China UnionPay, has been responding to the rapid take-up of smartphones across the country - about 68% of the population now has one. | State-owned China UnionPay, has been responding to the rapid take-up of smartphones across the country - about 68% of the population now has one. |
| On 12 December, it launched QuickPass - a "tap-and-go" payment system for mobile phones similar to Apple Pay and other digital wallets - in co-operation with more than 20 commercial banks. | On 12 December, it launched QuickPass - a "tap-and-go" payment system for mobile phones similar to Apple Pay and other digital wallets - in co-operation with more than 20 commercial banks. |
| QuickPass is already available at more than 10,000 locations in mainland China, says UnionPay, including at retailers such as Carrefour, McDonald's, and Costa. | QuickPass is already available at more than 10,000 locations in mainland China, says UnionPay, including at retailers such as Carrefour, McDonald's, and Costa. |
| "The Chinese market is going mobile very quickly," says Mr Birch. "And the integration of payment systems and messaging platforms such as WeChat is a very interesting development." | "The Chinese market is going mobile very quickly," says Mr Birch. "And the integration of payment systems and messaging platforms such as WeChat is a very interesting development." |
| This latest deal with Powa will give Chinese shoppers yet another way to shop using their mobiles. | This latest deal with Powa will give Chinese shoppers yet another way to shop using their mobiles. |