After much anticipation, a launch date has finally been set for the release of Samsung Pay. Going up against its competition to include Google and Apple, Samsung now has its own payment system designed to work with the older style credit card readers. With this, consumers can make in-person purchases at retail stores using their phone.
For Google’s Android Pay and Apple’s Apple Pay to interact with Point-of-Sale (POS) systems at merchant locations, Near Field Communication (NFC) sensors are used. However, Samsung adopted a new technology known as Magnetic Secure Transmission, which allows phones with the Samsung Pay application to communicate using the more conventional magnetic strip reader associated with credit card terminals found throughout the United States. However, Samsung Pay is also designed to support NFC.
Similar to how other mobile payment systems work, with Samsung Pay consumers will still need to confirm a purchase after placing the phone close to a POS system at the cash register using their fingerprint. As stated by JK Shin, CEO of Samsung’s mobile division, this new technology is completely safe, as well as easy to use. However, more importantly, Samsung Pay can be used literally anywhere a credit or debit card is swiped and typically without merchants being charged.
Both the new Galaxy S6 Edge+ and Galaxy Note 5 will come preloaded with Samsung Pay but for the Galaxy S6 and S6 Edge, it can be downloaded free. Samsung Pay will first launch on August 20 in Korea, followed by a September 28 release date for consumers in the United States. Consumers will receive the service through a software update according to Samsung.
Shortly after the US launch, Samsung Pay will roll out in other markets to include Spain, China, and the United Kingdom. This technology is fully compatible with loyalty cards, store-branded credit cards, and gift cards.
In addition to the partnership developed between Samsung and major credit card companies to include Visa, MasterCard, American Express, and Discover, it is partnering with US Bank, Chase, and Bank of America.
