Samsung maybe second to Apple in the world market, but the company is fighting hard for the first. On the eve of the Mobile World Congress in Barcelona, the South Korean company unveiled their very own mobile pay system Samsung Pay (answer to Apple’s mobile payment systems. This application allows one to pay for goods and services by waving the smartphone near a registered instead of swiping a credit card or pulling out cash.
Samsung Pay will let one enter credit card information and create a tokenization that protects that information – creating a unique card number for each device – and payments data. It will even come with physical authentication in the form of a re-engineered fingerprint reader on the Galaxy S6. No more swipe, just tap your fingers or thumb. It is very Apple Touch ID-esque.
The wallet application was debuted along side with the new smartphones Samsung Galaxy S6 and Galaxy S6 Edge. These two devices would be the first device to get Samsung Pay. The company said Samsung Pay will be launch in the USA and South Korea in the summer, with Europe and China to come later.
Samsung will be equipping the Galaxy S6 with two mobile payment options: NFC and Magnetic Secure Transmission (MST). NFC is what Android phones and the iPhone 6 have used for mobile payments but MST is completely different animal previously found in LoopPay, which the company acquired recently.
Samsung Pay has a big advantage over Apple Pay, however. Apple Pay requires specialized near-field commnication (NFC) pads to work, while Samsung’s system will work with any terminal with a standard magnetic stripe credit card reader and NFC. This way it will probably be lot easier for retailers to support the platform quickly. With the LoopPay’s technology built-in, Samsung phone would be able to do it with ease
The below picture from LoopPay shows how many retailer in the USA are capable of accepting its transactions versus Apple Pay.
How this would work with chip-and-PIN cards is not clear, but the service won’t be ready until the summer so we have some time to learn even more. One thing is certain for sure, the S6 will be outfitted to take advantage.