Samsung Pay leverages Mastercard Inc (NYSE:MA) to compete with Apple Pay and Google Wallet
Samsung Elect Ltd (F) (OTCMKTS:SSNLF) teams up with Mastercard Inc (NYSE:MA) to turn up the heat against Apple Inc. (NASDAQ:AAPL)’s Apple Pay and Google Inc (NASDAQ:GOOG)’s Wallet.
Mobile payments are rapidly taking over with major companies, such as Apple Inc. (NASDAQ:AAPL) and Google Inc (NASDAQ:GOOG), rushing to the frontline. The competition has been intense, and Samsung has been relentless to avoid being left behind. The company has had one big advantage to back it up; its partnership with MasterCard. It has been one of the main reasons Samsung will most likely remain in the game and why the company has been doing so well despite the heavy competition.
While the rivals are shifting to NFC technology, Samsung plans to use MasterCard to root itself deep into the online payments industry. It will also use NFC but with an extra twist called Magnetic Secure Transmission (MST). This is an advantageous strategy for the tech firm because most of the regions where the launch will be held have already massively adopted card technology. This makes it much easier to build up a clientele base.
Samsung’s initial plan was to launch the service in South Korea and the United States during the summer season this year, but it ended up launching earlier than planned. The next plan is to push its expansion strategy to Australia, China, South America and Europe before the year ends. One of the Advantages of Samsung’s MST payment service with NFC is that it will allow users to make payments at cash registers even if they are yet to adopt NFC technology. However, it will only work if the registers accept credit cards with magnetic stripes.
Currently, most countries already use such registers, and this is one big plus for Samsung because expansion will be extremely easy. Another reason Samsung Pay will most likely succeed in the long run is the massive backing that it has received through partnerships from major banks. Some of them include American Express Company (NYSE:AXP), Bank of America Corp (NYSE:BAC), and JPMorgan Chase & Co. (NYSE:JPM)
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