Trader Joe's testing Apple Pay; Alibaba talking to Apple

Trader Joe's may be the next major retailer to sign up for Apple Pay, which, if expanded beyond a test, will add 400 retail locations to the contactless payment system's total.

Apple Pay is supported at 78 merchants and other locations, with more than 700,000 terminals, reported 9to5Mac.com. These include supermarkets like Meijer, Acme, Whole Foods, Dick's Fresh Market, Winn-Dixie, Bi-Lo, Food Maxx, Lucky and Sprouts. It is also accepted at some apparel retailers and sports arenas. Electronics chain Best Buy signed on last month.

Apple Pay implementation at Trader Joe's appears to vary by location–some stores have it and are testing it, some are getting it, and some are unaware of the program. Online publication MacRumors verified that Apple Pay works in some Trader Joe's stores, and AppleInsider confirmed that they were operating in Raleigh, North Carolina. The retailer installed new VeriFone touch screen terminals recently that support wireless payments like Apple Pay.

Trader Joe's officials did not return calls for comment to AppleInsider, although managers in two California stores verified that the retailer is testing touchless payment solutions, including Apple Pay.

Other recent sign-ups include Cole Haan, which offers Apple Pay as an in-app payment option. Home Depot has indicated that it wants to add Apple Pay to its 2,000 retail locations, which would make it the largest merchant to accept Apple Pay. At least one hotel operator, the Cosmopolitan Resort in Las Vegas, said it plans to start accepting Apple Pay next month.

Apple is also in talks with Chinese e-commerce giant Alibaba and Chinese banks to enable the acceptance of Apple Pay with that retailer, Reuters reported. Alibaba has 22 physical locations, and plans to have 40 by next year. Alibaba's affiliate Alipay is the largest payments service in China.

"We very much want to get Apple Pay in China," Apple's CEO Tim Cook told the official Xinhua news agency during a recent visit to the country. "I'm very bullish on Apple Pay in China."

Analysts expect China to surpass the Americas as Apple's biggest market. In a first for Apple, the company sold more iPhones in China in the first three months of the year than in the United States.

Meanwhile, Apple's top competitor in the Android space, Samsung Electronics, said that it will launch Samsung Pay this summer, replacing Samsung Wallet. Using NFC and a new proprietary technology called Magnetic Secure Transmission, Samsung Pay can be used at merchants with conventional magstripe terminals. Samsung has partnered with major payment networks like MasterCard and Visa, and is working with other major financial companies such as American Express, Bank of America, Citi, JPMorgan Chase and U.S. Bank.

For more:
-See this 9to5Mac.com article
-See this MacRumors article
-See this AppleInsider article
-See this Pymnts.com article
-See this Reuters article
-See this Samsung press release

Related stories:
Apple Pay violates federal law, retailers say
Apple Pay fraud 'rampant' says payments expert
Bloggers attack reports of Apple Pay fraud
CVS, Rite Aid disconnect Apple Pay
This will be the year of Apple Pay

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