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Mobile commerce

Samsung Gets Into Mobile Payments

Samsung is getting in on the mobile payments game with a new service coming this summer.

The South Korean company had been widely expected to make the move into mobile payments. It will take on Apple Inc. (Nasdaq: AAPL),Google (Nasdaq: GOOG), Softcard and many, many others.

Like Apple and Google, the Samsung service can use near field communications (NFC) to allow phones to tap a reader for payments. NFC chips are in the last few generations of Samsung smartphones.

Samsung, however, will also implement another payment method that should allow its latest devices -- like the Samsung S6 -- to make payments at many more point-of-sale terminals than before. In February, Samsung bought Boston-based contactless payment specialist LoopPay for technology that could allow its phones to make payments on up to 90% of the POS terminals in commercial use today. (See Samsung Buys LoopPay to Take on Apple Pay.)


For more on wireless, visit the mobile section here on Light Reading.

The technology allows users to tap their phone on the reader where they would usually swipe their credit card. This is achieved using MST technology that tricks the reader into thinking it is getting a standard credit swipe by very quickly generating changing magnetic fields from the phone which can be read by a standard magnetic credit card reader.

Allowing Samsung devices to make mobile payments on terminals without NFC capabilities may give it some edge in the crowded mobile payments field. The vendor has had mixed fortunes with phone sales recently. (See Samsung Expects S6 to Buoy Q2 Profit.)

Separately, the company launched the Galaxy S6 Edge+ and the Note 5 phablet.

— Dan Jones, Mobile Editor, Light Reading

Kruz 9/10/2015 | 2:02:30 AM
Re: Lack of vision and lack of eco system Eventually, all the below can apply to your phone as well(except for the expiry), with the disadvantage of having a dead battery phone, a hanging application, a bad internet connection, etc... The card is practically fault free when compared to these, it just works.
nasimson 9/9/2015 | 12:07:33 AM
Re: Lack of vision and lack of eco system > A credit card is fairly practical, doesn't require power, can be
> handed out to a cashier and isnt prone to failure in comparison
> with an empty battery phone for instance

There are plenty of problems with the credit card. These can be forgotten at home. These have an expiry date. These wear out with time. These get lost and stolen all the time.
Kruz 8/27/2015 | 5:52:42 PM
Re: Lack of vision and lack of eco system When compared to Apple pay, samsung surely has a clear edge. The problem is, do we really need mobile payment in this form? Eventually, as they evolve, but for the moment no. They will have to phase out gradually into the current mobile payment model. A credit card is fairly practical, doesn't require power, can be handed out to a cashier and isnt prone to failure in comparison with an empty battery phone for instance. So the mobile payment now isn't really an answer, it is rather an answer for some problem waiting to occur.
kq4ym 8/27/2015 | 11:11:39 AM
Re: Lack of vision and lack of eco system If the system can truly handle 90% of the existing hardware it surely would be a great boon to Samsung and it's customer universe. I know most folks would like the ease "to tap their phone on the reader where they would usually swipe their credit card" giving a more uniform payment platform.
Kruz 8/20/2015 | 11:47:02 AM
Re: Lack of vision and lack of eco system I beleive Samsung is going with a very competitive product when compared to Apple Pay as the service doesnt really need changes to the existing POS(the biggest hurdles facing Apple Pay), provided that Samsung concludes the needed deals with the big names(Master, Visa); something it announced it is currently doing.
nasimson 8/17/2015 | 8:38:58 PM
Lack of vision and lack of eco system Samsung has the devices. But does it has the eco system? Samsung has millions of devices out there. More than any other manufacturer. But those are just phones: smart phones or feature phones. With limited capability to do anything else.
danielcawrey 8/15/2015 | 11:35:15 AM
Re: Samsung There sure are a lot of different mobile payment options now. Apple Pay, Softcard, Samsung...

I wish there was one standard for mobile payments. I mean, I don't have different sized credit cards in may wallet.
KBode 8/14/2015 | 12:43:22 PM
Samsung Seems over ambitious. AT&T, Verizon, and T-Mobile with the help of Discover card couldn't make a dent in the market (naming their platform over a religious extremist group certainly didn't help), so what exactly does Samsung think it can do differently?
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