What is Samsung Pay?
This entry was posted on Wednesday, April 12th, 2017.
Considering Samsung’s position as the world’s largest smartphone vendor (Source: IDC) and one of the most recognizable global brands (Source: Interbrand), the launch of Samsung Pay in 2015 was a hugely significant landmark in the ongoing development of the mobile payments industry.
And as the overall market continues to accelerate and expand, banks and service providers are working to identify and execute their integration strategies.
What are the benefits of Samsung Pay?
Like most mobile payment applications, Samsung Pay provides consumers with a convenient and secure payment method, in-store and in-app. A unique benefit for Samsung Pay users, however, is the incorporation of exclusive magnetic secure transmission (MST) technology. This means consumers can use the platform at virtually any payment terminal, even if near field communication (NFC) is not enabled. Consequently, Samsung Pay has the potential to be the most widely accepted mobile payments application on the market.
Of course, mobile payments are about more than just convenience. 86% of users who have been offered an incentive through their mobile payments application have claimed it, demonstrating the ‘value’ of value-added services when it comes to encouraging adoption (Source: ABA Banking Journal). The Samsung Pay rewards program, therefore, delivers the loyalty, rewards and couponing that consumers expect and demand.
For banks, Samsung Pay is an important channel through which to deliver innovative services, as it enables customers with compatible Samsung devices to make payments using their existing banking cards at nearly all payment terminals.
Securing Samsung Pay
Mobile payment users demand advanced security, so Samsung Pay incorporates various technologies and safeguarding protocols. As we have come to expect, tokenization is utilized to protect transaction data and mitigate fraud by replacing traditional primary account numbers (PAN) with unique identifiers called payment tokens.
Samsung Pay – looking to the future
With the mobile payments market expanding and maturing, we can expect to see the global deployment of Samsung Pay continue. And with the deployment of value-added services recognized as a key driver of mobile payments adoption, we predict the further integration of loyalty, rewards and couponing into the application.
Banks and service providers, therefore, must consider how Samsung Pay fits into their overall strategy. Understanding the market, technologies and benefits is key to ensuring they make the right decision and maximize the mobile payments opportunity.