Swatch's new release to set Chinese tills ringing

Swatch Group AG, the world's largest watchmaker by revenue, has chosen to launch its new smartwatch with the ability to allow mobile payments via China UnionPay Co's system - a move which experts said could present a significant challenge to products already available from rivals Apple Inc and Samsung Electronics Co.

The watch can process payments at point-of-sale machines globally as long as the machines use UnionPay linked to Bank of Communications Co's bankcard.

A technology chip embedded under the device's dial enables users to wave the watch at POS terminals to complete payments, just like swiping a card, but without the need to key in a PIN or sign a name.