February 06, 2015
Rumors about Samsung Pay which circulated a few months ago are about to become true in the first period of this year. More specific, it looks like the South Korean company will implement the payment system in their new smartphone, Samsung Galaxy S6 which will be launched on the 1st of March at the Mobile World Congress from Barcelona, Spain. No other details were revealed by now, but it looks that Samsung has great ambitions with this system.
It works on older magnetic strips
It is mainly built to compete with Apple Pay and it might have a huge advantage from the start, considering that the American competitor only can use its system on NFC-enabled. To compare, Samsung Pay, which will use LoopPay’s technology support will be available both for NFC and also older magnetic strips, a fact that might mean they are an option for much more customers. As like Apple, it looks like Samsung Pay will also use tokenization for its systems. This is a method that generates a random number for each transaction instead of letting merchants see what card number has the buyer.
FIrst payment service launched in 2013
Even though at global level Samsung hasn’t many experience with this system, they aren’t quite new in the domain, as Samsung Wallet was launched already in South Korea back in 2013, a system of payment which was also introduced in China as well in late 2014, October to be more specific. So, from the very beginning Samsung Pay looks like a very strong competitor for Apple Pay.