Samsung Pay, an Apple Pay rival, hits the market this Summer
It has been a few months since Apple announced its mobile Apple Pay system, and now Samsung has officially announced the company’s own offerings; called the “Samsung Pay.” Samsung made the official announcement earlier this morning during a press-conference, the same event that unveiled the Samsung Galaxy 6 and the Samsung Galaxy 6 Edge.
Samsung Pay allows consumers to transition to secure mobile payments at nearly all merchant locations. To date, mobile wallets have had extremely low acceptance with merchants utilizing conventional magstripe terminals. With Samsung Pay, consumers can now utilize their mobile devices to pay at existing point-of-sale terminals. To achieve this, Samsung leverages both Near Field Communication (NFC) and a new proprietary technology called Magnetic Secure Transmission (MST) to make mobile payments more accessible to merchants and consumers than ever before.
To deliver a best-in-class mobile payment solution, Samsung has partnered with major payment networks such as MasterCard and Visa. Additionally, Samsung is working hard to expand the partnership ecosystem for Samsung Pay with key financial partners globally, including American Express, Bank of America, Citi, JPMorgan Chase, and U.S. Bank, to provide greater flexibility, access, and choice for customers while enabling a simple and secure payment experience.
“Samsung Pay will reinvent 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 Electronics. “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.”
“Mobile commerce just got a lot more interesting,” said Jim McCarthy, Executive Vice President, Visa Inc. “Combining Visa’s expertise in payment technology with Samsung’s leadership in creating innovative mobile experiences, gives more choice to financial institutions who want to enable their customers to pay by phone.”
“We are committed to making interactions easier in the financial lives of our customers,” said Brian Moynihan, CEO, Chairman and Director of Bank of America. “Samsung Pay is another significant move in that direction for our 17 million mobile customers.”
In addition, the MST technology enables Samsung Pay to support private label credit cards (PLCC) with the cooperation of key partners, including Synchrony Financial and First Data Corporation. The engagement with merchants, issuing banks, and major payment networks offers customers the opportunity to use a wide range of payment cards and makes Samsung Pay a truly universal mobile payment solution.
Margaret Keane, President and CEO of Synchrony Financial, the largest provider of private label credit cards in the U.S., noted, “This is great news for our customers who can access their cards and make payments using Samsung Pay and great news for our retailers who won’t have to upgrade their point of sale terminals. We look forward to working with Samsung and others to deliver secure mobile payments for our 60 million active accounts.”
Samsung Pay will initially be available in the United States and Korea this coming summer and expand to other regions, including Europe and China with Samsung Galaxy S6 and Galaxy S6 edge.