Apple Inc. has reached a deal with China's big four state banks; giving impetus to the company's plan to launch the Apple Payment system in China in early 2016.

According to VentureBeat, several reports have suggested that Apple is planning to launch the service as early as February. Entering a deal with the big four state banks will allow Apple users to link to their local bank accounts.

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Apple is expecting some hurdles as currently, China's mobile payment system is largely dominated by e-commerce giant Alibaba's Alipay and Tencent's Tenpay (from a popular app, WeChat). 

Previous reports said that Apple has been ramping up hiring in October to bring Apple Pay to China. A newly created subsidiary of Apple in Shanghai free-trade zone is expected to play a big role in launching the lucrative payment system in the country. 

The Cupertino-based company has not released any details regarding the charges that the use of Apple Pay in China will attract. In the U.S., Apple charges 0.15% for all credit card transactions and 0.5 cents per debit card transaction. The amount the company is getting for such transactions has reportedly been a sticking point in negotiations.

According to The Wall Street Journal, Apple is looking for a potential market where electronic payments are starting and booming. China's big four state banks, as well as Apple spokesperson, have been tight-lipped about the negotiations.

The latest Apple iPhone models like the iPhone 6S and iPhone 6 support the Apple Pay system. These smartphones feature near-field communication technology, which permits users to use their device to pay for goods and services. A user just needs to tap a smartphone on the store's payment reader system and complete the purchase by scanning one's fingerprints.

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

TagsApple Inc., Apple Inc Launches, Apple Payment System, China's Big Four, State Banks