China UnionPay Reportedly Strikes Deal with Samsung to Use Embedded Chips

Samsung Electronics reportedly says it has an agreement with payment network China UnionPay that would enable embedded chips in more than 3 million of its devices in China with China UnionPay’s contactless-payments service, though no banks have yet been mentioned as issuers.

The reported agreement comes in advance of the widely expected launch of a version of Apple Pay in China in coming months, part of a partnership between UnionPay and Apple. UnionPay has already experimented with NFC payments on embedded chips in HTC and Samsung phones and in the summer announced a deal with Chinese device maker ZTE. 

The Samsung tie-up with UnionPay would include use of Samsung’s forthcoming phablet, the Galaxy Note 4, which would mean the device carries a stacked NFC controller and embedded chip, likely from NXP Semiconductors.