Swatch updates mobile-payment watches for China, linking with UnionPay to keep sales ticking
Company partners with 11 Chinese banks through UnionPay for second-generation payments watch
Swatch Group, which claims to be the world’s largest watch maker, has launched the second generation of its chip-embedded devices that can be used for mobile payments in China, after teaming with UnionPay to offer “Swatch Pay”.
The new watches can be linked with credit cards issued by 11 partner banks – including Bank of China, Industrial and Commercial Bank of China (ICBC), the country’s largest commercial lender, China CITIC Bank and Minsheng Bank – in addition to debit cards.
Swatch unveiled its first-generation of watches with payment functions in October 2015, also in partnership with Unionpay, China’s dominant currency-clearing company and credit-card issuer.
This trend for soaring mobile payment will definitely continue. Obviously, young people who have a penchant for mobile payments are emerging to be the major drivers for China’s consumer market
Nick Hayek, chief executive of Swatch, told South China Morning Post the watch company has now simplified the activation process, the main barrier for the first-generation of watches gaining market share.
He added the company was adding the latest payment function to its wrist watches, rather than embarking on an all-new aggressive go-digital strategy, to attract younger Chinese consumers.
“We want to stay in the watches business, not enter the consumer electronics business,” he said.
“We have a different strategy than consumer electronics businesses. We offer a watch first and foremost, and have added a simple function to it.”