Supports magnetic secure transmission (MST) and NFC.
Samsung Electronics is beginning to plan on large-scaled infrastructure expansion as it is set to release mobile payment solution ‘Samsungpay’. It is going to start on payment card reader infrastructure supply business with some of Korea’s biggest value added network (VAN) businesses to widen the use of Samsungpay, which is set to be released this July.
According to a related business circle on the 11th, Nicevan, which is the best VAN business in Korea, finished the development of multi-purpose pad for Samsungpay and started a mass-production process. It is planning to expand its pad to 30 or so affiliated stores that Nicevan possesses.
Samsung Electronics is keeping the infrastructure supply business a secret as it waits for a release of SamsungPay. It is been heard that about 300,000 payment card readers will be supplied to the market, but no one knows the exact number and time. Because Samsung Electronics can’t supply infrastructure by itself especially, cooperation with VAN business is essential.
It became known that as Samsung is continuously in touch with big VAN businesses, infrastructure supply business will be made that supports magnetic secure transmission (MST) and NFC.
To maximize its versatility, it is important that all MS-based payment card readers from affiliated stores to be interlocked, and mass-produce and attach MST+NFC multi-purposed pad to support NFC payment.
It is confirmed that Nicevan finished developing pad that supports Samsungpay. “We can’t give any details about our plan, but we already finished developing multi-purposed pad that supports Samsungpay and started mass-production for some of the supply.” A person associated with Nicevan explained about current situation for multi-purpose pad.
Samsung Electronics will choose Nicevan as its main partner and it is also in final stage of discussion with KICC, KSNET, KISNAN and etc.
“We can’t give any detailed plans because Samsung Electronics is maintaining secrets about supplying Samsungpay. But it is true that it is in a discussion with big VAN companies for infrastructure supply.” A person affiliated with VAN business circle said about Samsung’s current situation with VAN businesses.
Samsungpay’s success, which recently concluded its deliberation with Financial Supervisory Service security, depends on expansion of its uses. It plans to not repeat what it did in the past when Samsung Wallet business failed to draw financial corporations’ cooperation at the right time.
A reason to supply both MST and NFC is not to lose consumer’s experience to Chinapay, which is growing rapidly in South Korea.
Samsung Electronics also set up strong financial circles. Not just app card consultative groups such as Samsung, Shinhan, KB star, Hyundai, Lotte, and NH nonghyup, it also plans to cooperate with BC, Hana, and Woori cards to release a disposable virtual card. By inviting supplementary payment communication network partners such as Nicevan, KICC, DAUdata, and etc, it plans to settle problems with versatility in its affiliated stores.
“It is true that we are going to propel our infrastructure supply, but a detailed plan hasn’t come out yet. We are going to keep our cooperation with financial corporation moving forward.” A person affiliated with Samsung Electronics said about its infrastructure supply plan.
Staff Reporter, Kil Jaesik
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