The Secrets of Samsung Pay Revealed
Digital wallet volume will reach $75 billion in 2017, and could reach $503 billion by 2020, according to Business Insider’s in-store mobile payments forecast for the U.S. Plastic is passé and possibly on its way to becoming obsolete—mobile payments are where it’s at.
Although digital wallets (also known as mobile wallets) remain a mystery to many American consumers and businesses, the time is coming when more and more people will adopt this new technology. But what exactly is the attraction? Digital wallets allow consumers to store credit card, debit, and rewards card information on their smartphone, and then use that device to make in-store purchases––in an instant.
Samsung Pay is one of the more popular digital wallets, and includes among its rivals the well-known Apple Pay and Android Pay. Considering Samsung Galaxy is running neck-and-neck with Apple iPhone for the number one spot in global smartphone sales, Samsung continues to innovate to compete.
Samsung Pay, albeit not as often in the limelight as its competitors, offers features the other digital wallets do not. Merchants and consumers alike can benefit from the innovation.
What makes Samsung Pay different?
1) Samsung Pay can only be used on Samsung phones
Samsung Pay is only available in the U.S. on newer Samsung Galaxy phones––but that could change in the future. Samsung is trying out new products and features in different countries, rolling out the innovations it believes would be most successful in each region. In the future, for instance, Samsung Pay might be available on Android smartphones.
2) Samsung Pay uses both NFC and MST
Just what you need, more acronyms. But these two three-letter abbreviations are important to understanding how digital wallets work. They are the types of technologies that allow contactless payments via a digital wallet.
Apple Pay, Android Pay and Samsung Pay all use NFC, which stands for near-field communications, a type of radio wave that allows secure credit card data transmission from a mobile device to a point-of-sale (POS) system. Most of the newer chip-card enabled POS systems have NFC built right in.
Here’s the important difference, though: in addition to NFC, Samsung Pay also accepts MST, or magnetic secure transmission, which utilizes the magnetic stripe of older POS systems for secure data transmission and works on about 80-90 percent of all credit card terminals in the U.S.
So, if you are in business and have not updated your POS to an EMV-enabled chip card device, you very likely can accept Samsung Pay right now. And customers, if you have a newer Samsung Galaxy phone, you can use the Samsung Pay digital wallet at virtually every establishment that accepts credit cards.
2) Samsung Rewards
Digital wallets allow customers to store reward cards in-app, just like credit card information. But Samsung Pay goes a step further by offering Samsung Rewards for qualifying Samsung Pay purchases. Not only do customers receive rewards from their favorite stores, they also receive extra incentives to use Samsung Pay at checkout.
3) Ongoing innovations
The latest Samsung Pay features allow credit card payments to be authenticated by fingerprint and PIN, but Samsung is rolling out innovations across the globe that may seem futuristic. These include iris recognition technology, which allows a customer to authenticate a purchase by looking at their phone. Similar to fingerprint technology, iris recognition technology scans and recognizes the unique pattern of a person’s iris. It’s not yet available in the U.S., but look for it in the near future.
How to start accepting payments via Samsung Pay?
If you’re a merchant using an older POS that requires cards to be swiped, or using a newer EMV-enabled POS, you are most likely ready to accept credit card and debit card payments using Samsung Pay.
If you’re a consumer and have a newer Samsung Galaxy phone, here are a few easy steps to get started:
- Download and install the Samsung Pay app onto your Samsung phone
- Follow the simple instructions to add your credit cards into the digital wallet
- At in-store checkout, open the Samsung Pay app and select a card
- Wave or slide your phone near the credit card terminal or reader, while using your fingerprint to authenticate the purchase
- Snap, you’re done in a second.
Samsung Pay: the benefits to businesses and consumers
Like all digital wallets, the benefits to businesses and consumers include secure credit card payments, instant transactions with a wave or a tap near a POS device, super fast checkouts, in-store, in-app and online purchasing power, plus convenience, convenience, convenience.
Samsung Pay adds the major benefit of nearly universal acceptance in-store via its MST technology, which also allows it to be used on older magnetic stripe credit card readers, as well as newer POS systems. That’s the biggie.
As more customers adopt digital wallet technology, the secret is out. Give Samsung Pay a try, and you’ll find it’s not as mysterious as it might seem. In fact, you’ll likely find that simplicity is the main benefit.