August 24, 2016
Samsung Pay Set for Sept. Launch in U.S.
Aug. 17, 2015
Samsung announced its contactless in-store mobile payment solution Samsung Pay will be available to Galaxy S6 and S6 Edge users starting this week in Korea and on Sept. 28 in the U.S. The Korean smartphone manufacturer announced the dates for its highly anticipated Apple Pay competitor at its Samsung Unpacked event in New York City on Thursday. One of the main differentiators between Samsung Pay and other contactless mobile payment systems is the addition of Magnetic Secure Transmission (MST), which enables a contactless payment at terminals that only accept traditional magstripe payments. The company added MST to Samsung Pay when it acquired Boston-based technology provider Loop Pay in February .
“Instantly on day one, because of MST technology, Samsung Pay will be accepted almost anywhere consumers can pay today,” said Jim McCarthy, executive vice president of Innovation and Strategic Partnerships at Visa, one of Samsung’s partners in the venture. “We see this as a huge step forward for consumer choice and payment security.”
Like Apple Pay, Samsung Pay comes to market with broad backing from the financial ecosystem. It has partnered with American Express, Discover, MasterCard and Visa; major issuing banks including Bank of America, Chase and U.S. Bank; and processors including First Data, Synchrony Financial and TSYS. Unlike Apple Pay, at the moment, Samsung Pay does not allow for in-app card-not-present payments.
Also like Apple Pay, Samsung Pay users are authenticated using their fingerprint and the transactions are tokenized for security. On the same day as Samsung announced the launch dates, Visa said Samsung has joined its Visa Digital Enablement Program and will use the Visa Token Service to secure Samsung Pay transactions.