Samsung Pay is Samsung’s new mobile payment system that was due to launch next month, although now it would appear that the service is delayed.
In a recent investor call, Samsung’s Rhee In Jong revealed that Samsung Pay will launch in September. Samsung had previously said that their new mobile payment system was coming in July.
Background and Development
Samsung Pay is based on LoopPay, a mobile payments company that Samsung purchased earlier in the year for around $250 million. LoopPay’s technology is unique because it uses Magnetic Secure Transmission (MST), which allows it to work with traditional magnetic stripe card readers, making it compatible with a vast majority of existing payment terminals. This gives Samsung Pay a significant advantage over other mobile payment systems that rely solely on Near Field Communication (NFC) technology.
The company previously said that their new mobile payment system would launch in South Korea and the US when it is released, with more countries to follow. This strategic rollout is aimed at capturing key markets where mobile payments are rapidly gaining traction. Samsung’s acquisition of LoopPay and the integration of its technology into Samsung Pay demonstrates the company’s commitment to providing a versatile and widely accepted mobile payment solution.
Comparison with Competitors
At the moment, Apple’s mobile payment system, Apple Pay, is only available in the US, although they are expected to announce a roll out to more countries at WWDC 2015 next week. Apple Pay uses NFC technology and has partnered with major banks and credit card companies to facilitate transactions. However, its reliance on NFC means that it can only be used at terminals equipped with NFC readers, which are not as ubiquitous as traditional magnetic stripe readers.
Samsung Pay’s ability to work with both MST and NFC gives it a broader range of compatibility, potentially making it more appealing to both consumers and merchants. Additionally, Samsung Pay includes features such as tokenization and biometric authentication, which enhance security and reduce the risk of fraud.
If the Samsung Pay service has been delayed until September, then it could launch with Samsung’s new flagship Phablet, the Samsung Galaxy Note 5, which is rumored for a September launch. The timing of this launch could be strategic, as it would allow Samsung to capitalize on the buzz surrounding their new device and encourage early adoption of Samsung Pay among Galaxy Note 5 users.
As soon as we get some more details on the exact launch date of Samsung’s new mobile payment system, we will let you guys know. The delay in the launch of Samsung Pay could be due to various factors, including the need for further testing and refinement of the technology, negotiations with financial institutions and merchants, or regulatory approvals in different markets.
In conclusion, while the delay in the launch of Samsung Pay may be disappointing for some, it is clear that Samsung is taking the necessary steps to ensure that their mobile payment system is robust, secure, and widely accepted. The integration of LoopPay’s MST technology, combined with NFC, positions Samsung Pay as a versatile and competitive player in the mobile payments space. As the market for mobile payments continues to grow, it will be interesting to see how Samsung Pay evolves and how it compares to other solutions like Apple Pay and Google Wallet.
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