A British online payments start-up has a signed a 10-year deal with a division of China's only credit card company to bring its technology to the world's second-largest economy.
Powa Technologies has formed a joint venture with UnionPay Network Payments, a division of China UnionPay, to launch PowaTag UnionPay, an app that will let people pay for items via their mobiles in stores. It works by allowing a smartphone user to scan a code, pick up a Bluetooth signal or even register a sound via their device. The item which is then scanned can be purchased through Powa's app via mobile.
"This has huge implications for us of course," Dan Wagner, CEO of Powa Technologies, told CNBC by phone.
The startup, which raised a massive $80 million last year, valuing it around $2.7 billion, is trying to tap into the trend of so-called "online to offline (O2O)" – where shoppers search for products online then buy them in a physical store. The O2O market grew 80 percent in first half of 2015 and is worth around $47 billion, according to China's Commerce Department.