Samsung has announced that its mobile payment service, Samsung Pay, will be released in the U.S. on September 28th. Once released, it will be available for free on the Samsung Galaxy S6 Edge +, Samsung Note5, Samsung Galaxy S6 Edge and S6 for in-store purchases. It is estimated that over 30 million merchants will have the ability to work with Samsung Pay.
How It Will Work
When making a purchase, consumers will need to swipe up on their phone screen to pull up a list of their credit cards that are stored on their phone. The primary card will always be set as default, but in case a consumer wants to use a different card, they can swipe left or right to select it. Next, the consumer will place their phone by the payment terminal while holding their finger on top of the home button on their phone, which authorizes the transaction.
How Payments Will Be Processed
Like Apple Pay and Android Pay, Samsung Pay will work with NFC terminals. NFC technology allows consumers to make purchases with their phones when checking out. Samsung Pay also has the competitive edge, as it will also work with traditional standard terminals in-stores by interacting with the card swiper. All the consumer will have to do is place the phone near the magnetic stripe reader and the data will transfer to the terminal in the same way a magnetic stripe on the back of a debit/credit card would. By accepting payments on both NFC and standard credit card terminals, Samsung Pay will be accessible at more merchants than Apple Pay or Android Pay.
Samsung Pay uses tokenization to keep financial information safe and secure. Instead of sending debit/credit card number to the merchant, a one-time “token” is sent to the merchant’s terminal, ultimately protecting payment details through the payment process. Consumers can pay and not have to worry about their account information being revealed and possibly compromised.
Who Will Carry It?
Several financial institutions and cellular carriers will work with Samsung Pay including:
- American Express
Samsung Pay will be a great addition to the mobile wallet industry. Not only will more merchants accept it since it will work on both NFC and magnetic stripe terminals, but the enhanced security features and quick and easy features to make a purchase will be appealing for both consumers and merchants.