Samsung Pay Will Have A Slight Advantage Over Apple Pay Initially
Samsung today finally revealed its upcoming payments app, along with its new flagship devices Galaxy S6 and S6 Edge. As we reported earlier, Samsung’s payments app — Samsung Pay — will mirror Apple Pay in terms of functionality and user experience. While both Apple and Google have had contactless payment systems in the market already, Samsung wants to bridge the gap in the existing market with its new app.
The company’s payment solution will be compatible with both near-field communications (NFC) and magnetic secure transmission (MST). The latter is a part of the technology Samsung acquired from LoopPay. This will translate into Samsung Pay being able to process both contactless as well as swipe purchases from older terminals in the market.
The Galaxy S6 and the S6 Edge both contain a new and improved fingerprint sensor that will help accelerate the mobile payment experience. The new sensors will be able to work just like the way Apple Pay works by pressing a finger rather than swiping it across the reader.
To start with, Samsung Pay has partnered with MasterCard and Visa for credit card processing along with four major, and the largest card issuers — JP Morgan Chase, Citi, Bank of America, US Bank. The company has promised more partners will be on board very soon. For any payment app to succeed, these partnerships are as crucial as the overall user experience.
Samsung will have an edge with its payments app initially. There are more payment terminals in the US that do not support Apple Pay or NFC contactless payments right now, and Samsung Pay will work on all of those. Major US banks will also shift to newer EMV cards this year which use a chip present on the card, along with a PIN to authenticate the payment.
In short, Samsung Pay will be able to process both smart and dumb payment terminals. It’s the biggest advantage the Korean giant is going to have over Apple Pay. But with Apple increasingly looking to grow its partnership, and replace older terminals with newer ones at most major retail chains, Samsung will have to do a lot more than just offer legacy support.
Image source: https://www.samsungmobilepress.com/2015/03/02/Samsung-Announces-Samsung-Pay,-A-Groundbreaking-Mobile-Payment-Service