Samsung Enters Mobile Payment Market

The electronics manufacturer unveiled its Samsung Pay over the weekend.

March 04, 2015

BARCELONA, Spain – Samsung is edging into the mobile payments market with its newly revealed Samsung Pay, Mobile Payments Today reports. The electronics manufacturer officially unveiled Samsung Pay during the Mobile World Congress on Sunday. The mobile payment system will not be available until the summer.

Samsung Pay will use a dual approach to mobile payments with its use of LoopPay, a proprietary contactless payments technology said to mesh with 90% of POS terminals in the United States. Samsung has embedded LoopPay into its new Galaxy S6 and Galaxy S6 Edge smartphones. NFC chips will still be needed for customers to use tap-and-pay transactions at contactless-enabled POS terminals. However, LoopPay technology will still be able to “talk” to magnetic-stripe readers currently in use at nearly every terminal if contactless payment is not an option.

“As a result, this technology from LoopPay provides Samsung with a formidable option that meets the U.S. market where it stands today in terms of payment infrastructure upgrades,” said Michelle Evans, a senior analyst for Euromonitor International. “Even after the U.S. completes its shift from mag stripe to chip-based cards, this technology from LoopPay will continue to have relevance for gift cards, as well as loyalty and membership cards. That functionality could be an important differentiator for Samsung moving forward and ultimately help to drive adoption for its mobile wallet.”

Samsung Pay specifications are very close to Apple Pay’s. Samsung Pay has the support of Visa, American Express and MasterCard. The mobile payment system will roll out in the United States and South Korea first.

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