The Android-based HTC Stunning smartphone with built in NFC technology is slated to launch in China in September.
Through the deal with China's State-backed card processor UnionPay, Stunning-owners will be able to make contactless payments at merchants equipped with NFC point-of-sale terminals.
According to China Daily, there are around 900 million mobile phone owners in the country while by the end of the year there will be over 700,000 POS terminals.
"We support China UnionPay's mobile payment standard because it is an industry standard and is open for any mobile devices. It means customers will have more choices," Dennis Chen, head, Asia and China enterprise department, HTC, told China Daily.
China is leading the way for mobile financial services according to a recent survey from TNS which found that 25% of the population now use their handset for money matters, up from 10% in 2010.
HTC, Unionpay target mobile wallets - China Daily