Samsung Pay to challenge Apple for mobile payments

Dive Brief:

Consumer electronics giant Samsung announced a new mobile payments solution, Samsung Pay, which it will release on its Galaxy S6 and S6 smartphones later this year.
Samsung Pay uses LoopPay’s magnetic secure transmission (MST) technology, which about 90% of retailers in the United States can accept without modifications.
Samsung already has arrangements with MasterCard and Visa, and is working to secure deals with American Express, Bank of America, Citi, and JPMorgan Chase.

Dive Insight:

Samsung’s forthcoming mobile payments technology, Samsung Pay, looks like it will be a contender in the race to get U.S. smartphone users to adopt a mobile wallet solution. Samsung Pay will accept near-field communication (NFC) payments like Apple Pay, as well as card swipes using the magnetic secure transmission (MST) technology it acquired with the Kickstarter-funded LoopPay.

That flexibility means Samsung Pay will be compatible with most U.S. retailers’ existing terminals without modification—a big plus in winning adoption. With MasterCard and Visa on board and partnerships with many large banks in the works, Samsung estimates that it could quickly reach up to 30 million merchants worldwide. Samsung Pay will roll out on the company’s flagship Galaxy S6 and S6 smartphones this summer.