Samsung Electronics have previously announced their own mobile payment service, Samsung Pay, which will be releasing in Korea and the U.S this summer, and now has decided NOT to collect fees on the mobile payment service, in an effort to accelerate the adoption of their technology. Normally they would be looking at charging credit card companies a 0.0015 percent fee.
According to sources in the credit card industry, Samsung will not charge partnered credit card companies for Samsung Pay, which include Shinhan Card, Samsung Card, KB Card, Hyundai, Lotte Card, NH Card, Woori Card, Hana Card, and BC Card. This is also the same for value-added network service providers and online payment service providers.
“The NFC payment service accounts for less than 10 percent of the mobile payment service market, but the weight of the MST-enabled service is more than 90 percent. So, I think that Samsung Pay that supports both NFC and MST will be distributed faster than Apple Pay,” said Shin Jong-kyun, president of the IT & Mobile division at Samsung.
According to Industry sources this move is for Samsung to take on Apple in the mobile payment game. Samsung Pay, which supports NFC, magnetic secure transmission (MST), and bar codes for mobile payments, has already secured more affiliated stores than NFC-based mobile payment service Apple Pay.
