Samsung will make its payment service available in the US in the summer of 2015 as it tries to match the success of Apple pay.
Samsung Pay – which will be available on its Galaxy S6 – will allow consumers to pay for goods and services at more terminals, due to its use of technology known as magnetic secure transmission (MST) as well as near-field communications (NFC).
The company said payments by mobile phones had been restricted because traditional terminals have been retained. “To date, mobile wallets have had extremely low acceptance with merchants utilising conventional magstripe terminals,” said Samsung. It said its MST technology means customers can use Samsung Pay regardless of whether the terminals support NFC or traditional magstripe.
Samsung partnered MasterCard and Visa and is including global banks in its ecosystem.
“Samsung Pay will re-invent how people pay for goods and services and transform how they use their smartphones,” said JK Shin, CEO and head of IT & mobile communications division at Samsung. “The secure and simple payment process, coupled with our robust partner network, makes Samsung Pay a truly game-changing service that will bring value to consumers and our partners in the ecosystem.”
Read more about digital payments
- Mobile phone giant Samsung has acquired mobile payments startup LoopPay in what is being billed as a challenge to Apple’s fledgling mobile payments business.
- 2015 will be the year of mobile payments service Apple Pay, according to Apple CEO Tim Cook.
- Google is working with US telcos to boost its mobile wallet amid the fierce challenge from Apple Pay and Samsung.
Range of payment choices
Brian Moynihan, CEO at Bank of America, said this gives customers more choice. “We are committed to making interactions easier in the financial lives of our customers. Samsung Pay is another significant move in that direction for our 17 million mobile customers."
Samsung Pay can be accepted by about 30 million merchants worldwide.
The development looked likely when Samsung acquired mobile payments startup LoopPay in February 2015.
At the time, JK Shin said: ”Our goal has always been to build the smartest, most secure, user-friendly mobile wallet experience, and we are delighted to welcome LoopPay to take us closer to this goal.”
Samsung is not alone. Google and Apple have made recent investments in technology to allow people to make payments. The much talked about Apple Pay was launched in October 2014 in the US and Google last week made a deal with US telcos for its wallet to be embedded in mobile devices.