Xiaomi partners with UnionPay in online payments service targeting China

Chinese smartphone giant Xiaomi is rolling out its own mobile payment service on the Chinese mainland in collaboration with China UnionPay, which had earlier partnered with Apple and Samsung Electronics on the launch of their payment platforms in the country.

The new service is expected to become a major business that would allow Xiaomi to operate more as an internet services company with a vast smartphone customer base, analysts said.

Xiaomi, the mainland’s largest smartphone supplier last year, known for selling its handsets on razor-thin margins, is now facing the challenge of growing amid a lingering economic slowdown in its home market.

“We will make sure Xiaomi payment has a smooth user experience and we are working closely with UnionPay and several major banks,” said founder and chief executive Lei Jun on Thursday.

UnionPay and Xiaomi plan to co-design the “mobile payment product” based on Xiaomi smartphones for holders of UnionPay bank cards, according to a statement. No product details or time of availability were disclosed.