Samsung Electronics’ goal for Samsung Pay’s share in its first year is 15~20% of Samsung Smartphone users. Time for its commercialization is early September which is same as Galaxy Note 5.
At the ‘2015 Samsung Investor Forum’ that was held at Shilla Hotel on the 3rd, Vice-President Lee In Jong of Samsung Electronics’ wireless business department said that time for Samsung Pay’s commercialization is predicted to be in September, which is the same for flagship models. He also said that Samsung Pay will be first seen in Korea, U.S., China, Europe, Australia, South America, and etc.
Samsung Electronics usually released Note series in early September, which can be seen as that it will commercialize Samsung Pay at the same time as Galaxy Note 5.
At first business circle predicted that the start time for Samsung Pay’s service will be around June and July that is after the release of Galaxy S6. It can be seen as that their strategy to do ‘Samsung Pay Hunting’ at the same time as the release of Galaxy Note 5 is revealed at this investor forum.
Samsung decided to go after 15~20% of Samsung Smartphone users, which can be translated as that it will promote users to use Samsung Pay as their main payment method. There will be a support system where there will be user interface, connection with online and offline markets, and point benefit. It is working to have 17 million users by 2020.
Samsung Electronics explained that Samsung Pay’s greatest strength is its compatibility. It can be widely used such as being able to be compatible with currently existing Point of Sale (POS) system. Unlike Apple Pay that chose Near Field Communication (NFC), Samsung Pay is applied with Magnetic Secure Transmission (MST), which allows it to be used on currently existing card readers. Transaction is possible if Smartphone and POS are within 5 cm.
“If we achieve 15~20% shares by the end of the year, it means that Samsung Pay has settled into the market. We will also work on preparing plans to give benefits to users such as points, coupons, and etc.” Vice-President Lee added furthermore by saying what Samsung Electronics will work on in the future.
He said that Samsung Pay will provide large added values to consumers and credit card stores. He also said clearly that Samsung Electronics prepared disposable pin number method and Samsung Knox as their security measures and that there will not be any worries about safety issues since transaction information cannot be saved without user’s agreement.
Samsung Electronics is applying to Samsung Pay to every flagship Smartphone models that are released from now on. This service however cannot be used models that were released prior to Galaxy S6 because previous models do not have compatible hardware. This problem arises because Samsung Pay transmits and receives transaction data by creating its own signal that is made by electricity in a coil, and this is a method that is chosen after Galaxy S6.
Samsung Electronics is also pushing for applying Samsung Pay onto wearable equipments. It will be planned to use to pay for public transportation fees by choosing ‘Tap&Go’ method that is being used on Android Smartphone. Samsung Electronics said that it wants to cooperate with Google in a relationship with Google’s ‘Android Pay’. Although it opened its possibility, it is approaching with the mentality that it will not lose any leadership by relationship.
“We are cooperating with global card businesses such as Visa, American Express, and Discovery, and we have planned this for 8 months. As the only mobile payment solution that has MST, Samsung Pay will go after the market with its stability, easiness, and ability to be widely-used.
Staff Reporter Kim, Seungkyu | email@example.com , Staff Reporter Seo, Hyungseok | firstname.lastname@example.org