– This is the script of CNBC's news report for China's CCTV on September 21, Monday.
Welcome to CNBC Business Daily, I'm Qian Chen.
On the company's last earnings call, Apple CEO Tim Cook said Apple Pay is on track to be accepted at more than 1.5 million U.S. locations by the end of the year.
Apple is trying to capitalize on a fast-growing market.
Accoring to e-marketer, mobile transaction...
With this mobile payments solution, Apple is betting that consumers will no longer want to carry their wallets, credit cards or cash. Instead, they'll opt for a method of payment that Apple bills as faster, easier and more secure.
Users walk up to a checkout line while holding their iPhone 6 or iPhone 6 Plus up to a special reader. By simply pressing the fingerprint sensor, the transaction is completed. (Apple Pay is also compatible with Apple Watch).
Apple's mobile payments service has been working with PayAnywhere, a credit card reader serving 300,000 locations across the country. The newest version of the PayAnywhere reader will be available exclusively in Apple Stores nationwide.
One potential challenge for Apple is attracting merchants to the service. To make Apple Pay work, stores have to install what's called an NFC reader (for near-field communication) at the checkout line.
This kind of growth has encouraged a range of tech titans to move hard and fast into this space: Both Android Pay and Samsung Pay (from Google and Samsung, respectively) are to be released soon. In addition, Paypal is trying to expand its mobile payment market share as well.
Besides these players, three years ago, a group of US retailers working in cooperation with the Merchant Customer Exchange umbrella, chose to delve into the mobile payments market.
The MCX partnership includes Target, Walmart, and Darden Restaurants. Three years hence, the companies within the partnership are finally deciding to roll out the technology required to enable mobile payments.
However, no matter how intensive the competition is,
there's one mutual challenge -- security.
[MICHAEL AU Gemalto, President South Asia & Japan] "065118 Only in the first half of 2015, we've seen more than close to 900 incidents of breaches. This is probably comprimising around 2.4 million records. 065129"
Micahel Au, President of Gemalto's South Asia & Japan region, told CNBC that companies will have to work harder on data protection, in order to win the heart of the market...
CLN RUN DOWN 09_21_2015
[MICHAEL AU Gemalto, President South Asia & Japan] "065217 More importantly, we are trying to do 2 things. First, we are trying to create what we call protection of the digital identities. So this is creating protection, preliminary wall so that the fishers, or the thief can not really come to your system. and then you have the protection of the core. So even if you have someone breaching to the system for the data, it will be secured or protected. 065241"
CNBC's Qian Chen, reporting from Singapore.