21st of August 2016
- Summary: Samsung Pay is a cards-based digital wallet for NFC-contactless purchases operating in multiple markets and launched in Aug ’15 in South Korea. Spain was the first European country where Samsung Pay launched (Jun ’16). Samsung Pay works on Samsung mobile devices.
- Website: http://www.samsung.com/us/support/owners/app/samsung-pay
- Status: Live
- Market: South Korea (Aug ’15), United States (Sep ’15), China (Mar ’16), Spain (Jun ’16), Singapore (Jun ’16), Australia (Jun ’16), Puerto Rico (Jul ’16), Brazil (Jul ’16), Russia (Sep ’16), Malaysia (BETA, Nov ’16), Sweden (Apr, ’17), UAE (Apr, ’17)
- Type: Other
- Ownership: Samsung Electronics (http://www.samsung.com/)
- Functions: Retail payments only
- Payment Mode: Cards-based
- Channel: POS via NFC and MST (Magnetic Secure Transmission), WEB (in South Korea only)
- Roadmap: n/a
- Registration & set up: User opens Samsung Pay app which comes preloaded on several smartphones. It can also be downloaded from Google Play. It only works with the following supported devices: Galaxy S7, Galaxy S7 active, Galaxy S7 edge, Galaxy S6, Galaxy S6 active, Galaxy S6 edge, Galaxy Note5, Galaxy S6 edge. Users only need to scan the card onto their smartphone using the company’s complimentary card reader, accept service terms and conditions, and then enter a verification code to confirm card ownership. User can add credit or debit cards, gift cards as well as membership and rewards cards. Up to 10 payment cards can be added. There is no limit to the number of gift cards that can be added to Samsung Pay.
- Making a payment: Samsung’s service works almost everywhere because it uses both near field communication (NFC) and magnetic secure transmission (MST) to transmit payment information. The device is able to tell what type of signal, NFC or MST, is needed to complete the transaction. To make a payment, user swipes up from the bottom of his device’s screen—something that can be done even if the screen is turned off and the device is locked—select the card to pay with, and place a finger on the home button for fingerprint authorization. Also supports PIN code and iris recognition in order to authenticate a transaction.
Payment Flows & Technology
- Merchant perspective: The merchant processes a payment using their existing payments processing systems. Samsung Pay simply facilitates the payment by securely passing payment credentials to the merchant, and is not a party to the transaction.
- Security: Tokenization creates a unique randomized set of numbers to be used at each new transaction, so user’s real card number isn’t used. Samsung Knox technology constantly monitors user’s phone to keep his information safe. Card information is encrypted in a separate and secure data vault at all times.
- Strategy: Samsung Pay does not charge any fee to merchants. In fact, Samsung Pay is free for merchants to use, which should give them one other way to be competitive in the marketplace. Samsung says it won’t get any direct revenue from transactions. However, it is hoping the service will be compelling enough for people to choose a Samsung phone over a rival’s.
- Payee fee: No charge for merchants.
- Payer fee: No charge for consumers.
- Launch date: South Korea (Aug ’15)
- Closed Date: N/A
- Users: Over 5 million (source: https://www.engadget.com/2016/02/20/samsung-pay-5-million-users/)
- Retailers / merchants: No data yet
- Transaction volume: Nearly 100 million transactions (source: http://www.mobileworldlive.com/money/news-money/samsung-pay-clocks-up-nearly-100m-transactions/).
- Transaction value: The volume of transactions since Samsung Pay’s launch in South Korea has reached KRW 2 trillion ($1.67 billion) (source: http://www.mobileworldlive.com/money/news-money/samsung-pay-clocks-up-nearly-100m-transactions/)
- Other data points: Over 4 million membership and loyalty cards registered by users in the US and South Korea (source: http://www.mobileworldlive.com/money/news-money/samsung-pay-clocks-up-nearly-100m-transactions/).
Links & Media
Contact (MobeyForum Members only)
- Name: N/A
- Address: N/A
- Email: N/A
- Phone: N/A