Samsung Pay has been introduced on the newly announced Galaxy S6 and S6 Edge, adding tap-to-pay functionality that will be instantly compatible with thousands of payment systems worldwide. Samsung Pay is ushering in a new era of mobile payments and e-commerce.
Mobile wallets have had extremely low acceptance with merchants utilizing conventional magstripe terminals. With Samsung Pay, consumers can now utilize their mobile devices to pay at existing point-of-sale terminals. To achieve this, Samsung leverages both Near Field Communication (NFC) and a new proprietary technology called Magnetic Secure Transmission (MST) to make mobile payments more accessible to merchants and consumers than ever before.Samsung Pay incorporates LoopPay Technology to allow its phones to work at magstrip readers.
Since Samsung Pay uses both near-field communication and traditional magnetic-strip terminals, Samsung’s payment system will likely be accepted at over 90% of retail locations.Samsung Pay works in much the same way as Apple Pay.It will be available on Samsung’s Galaxy S6 and S6 edge. The user taps the payment at a terminal and authenticates with a fingerprint sensor.The retailer receives only “a device-specific token and a dynamic, one-time-use security code,” Only the bank and payment network ever have access to specific credit card information. The credit card data is not kept anywhere on the device.
Samsung’s pay solution may work at more stores, but it, too, will be limited to customers who own its newest phones and and have gone to the trouble of installing the payment app since the app may not be pre-installed and the initial roll-out this summer will only be in the United States and Korea. Samsung also rounded up many partners including Visa, MasterCard, American Express and the largest banks, including JPMorgan Chase and Bank of America.