With digital payment apps on the rise, Samsung has announced the release of its new mobile payment solution, Samsung Pay. The app will act as a digital wallet for Samsung users, and will go head-to-head with Apple Pay for mainstream acceptance.
Users of the new service will be able to activate their debit, credit or business cards on their phone and use the device to make contactless payments. Unlike Apple Pay, which requires merchants to upgrade their point-of-sale technology for use, Samsung Pay will be compatible with existing sales equipment.
“Samsung’s inclusion of magnetic strip recognition alongside Near Field Communication (NFC) puts it ahead of Apple Pay, bringing more versatility for users and merchants alike – especially in markets where magnetic strip readers are still the main payment method,” says Dan Wagner, eCommerce veteran and CEO of Powa Technologies. However, adds Wagner, both solutions are still lacking the “cutting edge” they need to fully meet user demand.
“With consumers’ shopping habits constantly evolving, now is the time to rethink the entire shopping experience and break free from the reliance on point-of-sale terminals and queues,” he continues. “What shoppers and merchants alike really want is a cross-channel payment method that allows transactions to take place anywhere, at anytime, from a range of mediums. Until this level of freedom is achieved, mobile payments will remain more of an added bonus than the must-have feature the industry needs.”
Samsung Pay is set to launch in South Korea later this month, with the service coming to the U.S. in September. It will later be introduced in the UK, Spain and China. CJ