Counterattacking the large $10.9 billion dollars in revenue Apple made off of their mobile pay application, Samsung has launched their own version called “Samsung Pay” where users can add credit and debit cards so they can pay, without a physical wallet, on the go.
Additionally, Samsung Pay will add a membership feature where users can add membership or rewards cards they have at businesses, like Whole Foods and Vons, to get those much-needed discounts or points. Gift Cards can be added as well.
Typically, in order for pay apps to work, in-store terminals need to be equipped with Near Field Communication (NFC) technology. Companies like Apple and Google use these technologies for their mobile wallets, but there is a problem with NFC technology – a lot of in-store terminals are not equipped with NFC technology, so users aren’t able to use their mobile wallet especially if it’s more common for a store to not have NFC technology then to have it.
Samsung looks to remedy this problem by using a mix of both new and old technology. Many of the terminals at businesses are still equipped with Magnetic Secure Transmission (MST) and are slow at adopting the new NFC technology. Having access to both technologies will offer users confidence that no matter what store they enter, they can be assured that they can use mobile payment regardless if the terminals have an MST or NFC system in place. This will be most beneficial for consumers and businesses that’ve fallen behind in technology trends and will provide a safety-net until all businesses start using NFC technology.
There is no doubt though: NFC technology is still the future and is predicted to make $620 billion this year. Businesses and consumers are moving on from MST terminals for a more favorable NFC system. Apple may’ve seen the future before Samsung, but as a business, Apple may be moving too fast for their consumers and businesses to catch up, while Samsung is slowly building a base from Apple’s leftovers.