AppleApple Pay works on the iPhone and Apple Watch

Apple Pay is coming to China by February of 2016, according to Wall Street Journal reports. The devices, which Square unveiled in June, can read the chip on a chip-equipped card or be tapped using near-field communication (NFC), while accepting payments through Apple Pay, Android Pay and other payment services. The Cupertino, California-based firm seeks to kick off its new service before the Spring Festival holiday on February 8.

Whenever Apple Pay goes live in China, we'll definitely report about it right here. In addition, Apple has been hiring more people for this team. On the other hand, Alipay - Alibaba Group Holdings Ltd's (NYSE:BABA) payment service, and WeChat, a subsidiary of Tencent Holdings Ltd (OTCMKTS:TCEHY) dominate the private sector.

The latest Apple iPhone models like the iPhone 6S and iPhone 6 support the Apple Pay system. The sources said that Apple had struck deals with China's big four state banks, which will help speed the process along. Meanwhile, Apple's newly created subsidiary in the Shanghai free-trade zone was believed to be part of that wider push to enter the lucrative payments space in the country.

It's not always easy for small or temporary businesses like kiosks to accept chip cards and mobile payment services because they don't necessarily have the required hardware available.

Apple's profits from China increased 99% to $12.5 billion in the third quarter of this year.

Apple had been trying to reach an agreement with Chinese bank UnionPay, which is the only bank in the country that conducts interbank payments. Banks in countries such as China and Australia seem to be balking at those transaction fees. In the United States, it reportedly gets a cut of 15 cents for each $100 Apple Pay transaction.

Despite regularity hurdles and intense competition, China still remains an important market for Apple showing the fastest growth.