Samsung Pay- MERCY JANE P. BALLESTEROS-

What is Samsung Pay?

Overview

Introducing a better way to pay. Samsung Pay is accepted at more places

than any other mobile payment service out there, from the grocery store to the coffee shop to your favorite department store.

It’s secure, easy to set up and simple to use with your latest Samsung Galaxy device.

With the widest acceptance of any mobile payment service, Samsung Pay brings us closer than ever to a world without wallets.

Description

Samsung Pay is accepted virtually anywhere you can swipe or tap your card.

Samsung Pay makes transactions super easy — Swipe up to launch the app.

Secure with your fingerprint. Hover your device over the card reader to

pay.

And it’s safe. Your purchases remain yours alone. Samsung Pay doesn’t store or share your

payment information, so you can pay without worry.

Note: Only compatible with select cards and Samsung devices.

Samsung Pay vs. Apple Pay: How they compare

How does it differ from Apple's mobile payment system?

Here are some of the immediate differences and similarities consumers will notice:

Samsung Pay can be used in more places

Unlike Apple Pay, which requires stores to have or install terminals that use near field communication (NFC) for receiving payment information;

Samsung's payment system will be "available virtually anywhere you can swipe a card," said JK Shin, the CEO of Samsung's mobile business.

That's because in addition to NFC, it also uses magnetic secure transmission (MST), which means it will work with a store's standard credit card swipe reader.

That technology was acquired when Samsung bought mobile payment tech company LoopPay in February.

But it might not be quite as easy to use

Samsung might not be able to match Apple’s streamlined set-up process.

And though both can be unlocked with a fingerprint, Apple Pay automatically launches when it's near an NFC terminal, even if the phone is sleeping. Then all you have to do is put your finger on the Touch ID scanner.

Samsung Pay requires you to choose a card, scan your print, then tap to pay.

Like Apple Pay, it's only available on certain phones

In the same way that Apple Pay is only on the iPhone 6 and 6 Plus, Samsung will launch Samsung Pay on only a few phones.

It will come automatically loaded onto the new Galaxy S6 Edge and the +Note 5 which go on sale August 21.

Mobile wallet war heats up with Samsung Pay

Samsung Pay works on more merchant machines than any other option, but it’s competing in a hotly contested market against Apple and Google.

Samsung recently announced the U.S. launch of its mobile-payment service called Samsung Pay.

The service allows users to make payments from their Samsung handsets at supported credit card machines.

Samsung noted that its technology supports more credit card machines than Apple Pay AAPL 0.62% and Google’s GOOGL 0.67% Android Pay.

The claim was the first salvo in what is expected to be a long battle not only with competitors, but also traditional payment methods.

Mobile wallets have grown in popularity thanks to Apple Pay, which launched in 2014 The market was further boosted this year by the launch of Android Pay.

Mobile wallet technology uses near-field communication chips in smartphones to let users make payments remotely.

Mobile wallets store user credit cards and once a user makes a purchase, a unique identifier code is sent from the smartphone to the receiver.

The payment is made and the credit card number is never shared with the merchant.

Trillions of dollars are spent each year in commerce. By offering mobile wallets, companies—like Samsung, Apple, and others—can get a small slice of each transaction made through their services.

If mobile wallets take off the revenue opportunities are massive.

Here's why Samsung Pay is way better than Apple

Pay and Android Pay

Samsung’s mobile payment service is accepted almost everywhere and, unlike Apple Pay, works with older retail terminals.

Samsung Pay, the company’s mobile payment service, launched in the U.S. this week.

The service—previously only available to beta testers—is designed to make purchasing items easier by replacing your physical wallet with digital versions of your credit and debit cards.

The more common NFC is the same technology found in Apple Pay and Android Pay, where payment information is securely transmitted between an NFC chip (found in the smartphone) and an NFC reader (usually installed near the point of sale machine).

The downside to relying solely on NFC is its lack of widespread adoption amongst retailers, since vendors have to invest in new hardware in order for the technology to work.

Meanwhile, MST works by sending a small magnetic signal from your smartphone to a credit card reader, essentially mimicking the same signal that’s produced when you swipe your card.

Nearly all retailers have a credit card machine which will allow Samsung Pay to work and doesn’t require additional investment in infrastructure and/or staff training to work.

Samsung Pay’s setup process is pretty standard as far as these types of services go: Users only need to scan the card onto their smartphone using the company’s complimentary card reader,

Accept service terms and conditions; and Then enter a verification code to confirm card ownership.

To make a payment, you swipe up from the bottom of your device’s screen—something that can be done even if the screen is turned off and the device is locked—select the card you want to pay with, and place a finger on the home button for fingerprint authorization.

The entire process takes seconds. You don’t have to mess with a wallet, or dig through your purse to find a card; you pull out your phone, swipe, and pay.

It’s just as fast as Apple Pay or Android Pay, only you no longer have to figure out if NFC payments are accepted by the retailer.

It’s important to note that Samsung claims its mobile payment service will work at 95% of retailers and with most older card readers, save for gas pumps and ATMs.

Here's why Samsung Pay is way better than Apple

Pay and Android Pay

Tens of thousands of users are signing up daily for Samsung’s mobile payment service.

In its first month in South Korea, Samsung’s rival to Apple and Android Pay has rung up $30 million in transactions.

The figures are the first to be released by a major company in the growing field of mobile payment services;

Which are pushing to become an alternative to shoppers paying with cash or swiping their credit cards at stores.

Samsung’s data shows modest progress with its service, but it also highlights how far there is to go in its home country.

To use Samsung Pay, people open an account by entering their credit card information.

After that, they can pay for what they purchase by merely tapping their phones on a point of sale device that uses wireless technology.

Mobile Payment Battle: Samsung Pay Vs. Apple

Pay

Apple Pay clearly has a current advantage as of August 2015 in the mobile phone payment system war by virtue of already being in the marketplace, a number of analysts are giving the edge to Samsung Pay before it has even entered the market.

One Crucial Difference

Samsung Pay is due to launch in the United States in September of 2015, and some analysts are already predicting it will quickly overtake Apple Pay because of one crucial difference: the ability to use the system in many more retail locations.

Both systems serve the same purpose, to enable consumers to do card-free credit card transactions at retail stores by using their smartphones, but there is a significant difference in the operational technology of the two systems.

Apple Pay only uses the NFC, radio wave-based technology, and therefore can only be used at retailers that have the newer NFC reader-equipped credit card machines.

In contrast, Samsung Pay is capable of using both NFC technology and the older MST, magnetic field-based technology that still exists at the majority of retailers.

It is estimated that less than half a million retailers in the U.S. have so far made the upgrade to NFC reader-equipped card machines.

The fact Samsung Pay is able to be used at millions more retail stores than Apple Pay is the reason many analysts are predicting Samsung Pay, although arriving nearly a year behind Apple Pay, may overtake the Apple, Inc. (AAPL) system in a relatively short period of time.

A Possibly Short-Lived Advantage

The caveat on the usability advantage for Samsung Electronics Co., Ltd. (KRX: 005930) is it may prove to be short-lived.

NFC reader machines are already the standard in Europe, and the likelihood is credit card companies such as Visa and MasterCard, seeking improved transaction security, will force U.S. retailers to upgrade to the NFC machines in the near future. Therefore, it is entirely possible that within 12 to 18 months of its introduction, Samsung Pay will have lost its advantage in this area.

Ease of Use - Edge to Apple

The caveat on the usability advantage for Samsung Electronics Co., Ltd. (KRX: 005930) is it may prove to be short-lived.

In regard to convenience and ease of use, the Apple Pay system has a slight edge. Even if the phone is locked, all iPhone users have to do is tap it to a payment terminal and do the required fingerprint scan.

The process is a bit more involved for Samsung Pay users, who must first select the credit card they wish to use before tapping the phone to the terminal and then authenticating the transaction with either a PIN number or fingerprint scan.

Security - Edge to Samsung

The basic security for mobile payment transactions is provided by a secure element that actually authorizes the transactions, either in the form of a chip or cloud-based software.

Both Apple Pay and Samsung Pay have highly rated secure elements.

And both systems use what is called Mobile Digital Enablement System tokenization, which refers to the process where individual payment "tokens" are created for each payment, so a consumer's card number is never disclosed to the retailer.

But Samsung Pay has an additional layer of protection in the form of software that adds superior real-time hacking surveillance.

Compatibilty – Edge to Apple

Apple Pay is compatible with current iPhone models and the Apple Watch.

Samsung's system only works with its current smartphone models.

One More Plus for Samsung

Samsung has added another feature to its system with Samsung Pay on TV service.

Developed in conjunction with PayPal, this service introduced on Samsung smart TVs in 2016 simplifies the process of paying for television content by reducing it down to, after an initial setup, simply entering a PIN number.

Mobile Payments Showdown: Apple Pay vs. Android Pay vs. Samsung

Pay

The question you should be asking isn't whether one of these is better than another—but is the one you have better than credit cards.

Apple Pay

How it works After inputting your credit card information,

open Apple Pay at the register with your fingerprint, select the card you want to use, and hold your phone up to the terminal. Your iPhone uses NFC (Near Field Communication) technology to communicate with the register.

Compatible phones Only Apple devices; iPhone 6

and later.

Why it’s good The retailer doesn’t get your

credit card, which should prevent fraud.

Disadvantages Relatively few retailers accept

Apple Pay at the moment.

Samsung Pay

How it works Just like Apple Pay, you add your credit

cards, open the payment app, select a card, and tap your device against the terminal to pay.

But if there isn’t an NFC terminal, simply swipe the phone as if it were a regular credit card.

Compatible phones Only Samsung phones; Galaxy

S6, Note5 or later.

Why it’s good It works everywhere, since it can

mimic a magnetic strip if NFC technology is unavailable; retailers don’t get your credit card info.

Disadvantages The non-NFC version is finicky.

Android Pay

How it works What used to be called Google Wallet uses

NFC; as with the others, simply select the credit card you want to use from the app and tap your phone against the terminal.

Compatible phones Android phones with NFC

technology.

Why it’s good It works with more than just

Samsung phones; many retailers accept it.

Disadvantages It works only with Android

phones.

Samsung Pay vs Apple Pay vs Android Pay:

Which Should Replace Your Wallet?

Samsung Pay

Samsung Pay uses two technologies to allow you to pay for things almost anywhere you go: NFC (near-field communication) and MST (magnetic secure transfer).

NFC uses a special chip in your phone that lets it communicate with NFC-enabled payment terminals. 

MST (Magnetic Secure Transmission) the same technology that regular credit card readers use.

So you can use Samsung Pay at any nearly credit card swipe terminal in the U.S. — making it the most widely accepted mobile wallet on the market. No one else comes close.

To use Samsung Pay, you swipe up from the bottom of your phone’s home screen to pull up your available credit cards.

You then either enter your pin or use your fingerprint to verify your identity.

The phone sends out alternating NFC and MST signals; whichever system your phone detects first is the one it will use to complete your transaction. 

Apple Pay

Apple Pay only uses NFC technology, which means it can only be used at retailers with NFC-enabled payment terminals.

That significantly limits the number of places you can use Apple Pay, so don’t automatically assume you’ll be able to pay for your microwave burritos at the corner market using your iPhone.

To use Apple Pay, you place your phone next to a participating retailer’s NFC-enabled payment terminal.

Your iPhone will wake up and bring up your default credit card. You then place your finger over your phone’s fingerprint reader, and you’re set.

Android Pay

Android Pay works only at retailers that have NFC-equipped payment terminals. That automatically limits the amount of stores where you can use your Android phone instead of cash.

It doesn’t currently with any apps, but Google says it’s working on app integration in the future.

To use Android Pay, you simply have to unlock your phone and place it over a compatible NFC payment terminal. Your handset will automatically detect your default credit card, and that’s that.

It works with any Android-powered smartphone phone running Android KitKat 4.4 or later that has a built-in NFC chip. That means there are dozens of Android phones out there compatible with Android Pay.

The best mobile wallet is …

Apple Pay is compatible with the most banks, and Android Pay works with a huge number of smartphones, but when it comes to mobile wallets, Samsung Pay is the one service that proves mobile wallets are ready for prime time.

References August 13, 2015. CBS Evening News. Samsung Pay aims to

revolutionize mobile payment. Youtube.com https://www.youtube.com/watch?v=92hG40sWspc Retrieved Date: October 20, 2015

September 29, 2015. Wall Street Journal. Youtube.com. Samsung Pay works where Apple Pay doesn’t. https://www.youtube.com/watch?v=aT5jPJ1IWu0 Retrieved Date: October 20, 2015

September 20, 2015. Samsung Mobile USA. Youtube.com. Its not a Phone, It’s a Galaxy: Samsung Pay https://www.youtube.com/watch?v=hmT0WGVjT4M Retrieved Date: October 20, 2015

References October 16, 2015. The Dallas Morning News. Youtube.com. Tech

review: Samsung Pay vs. Apple Pay. https://www.youtube.com/watch?v=A9AWoy9RtMQ Retrieved Date: October 20, 2015

March 3, 2015. CNET. Youtube.com. Samsung Pay: Easy as a swipe and tap. https://www.youtube.com/watch?v=03jSxIYhUu4 Retrieved Date: October 20, 2015

Samsung.com. http://www.samsung.com/us/support/owners/app/samsung-pay Retrieved Date: October 20, 2015

References August 13, 2015. Amanda Schupak. CBSNews.com. Samsung Pay

vs. Apple Pay: How they compare. http://www.cbsnews.com/news/samsung-pay-vs-apple-pay-how-they-compare/ Retrieved Date: October 20, 2015

October 1, 2015. Don Reisinger. Fortune.com. Mobile wallet war heats up with Samsung Pay http://fortune.com/2015/10/01/samsung-pay-mobile-wallet-battle/ Retrieved Date: October 20, 2015

September 23, 2015. Lenna Rao. Fortune.com. Samsung reveal first numbers for its Apple and Android Pay rival. http://fortune.com/2015/09/23/samsung-pay-traction/ Retrieved Date: October 20, 2015

References September 10, 2015. J.B. Maverick. Investopedia.com. Mobile

Payment Battle: Samsung Pay Vs. Apple Pay. http://www.investopedia.com/articles/markets/091015/mobile-payment-battle-samsung-pay-vs-apple-pay.asp Retrieved Date: October 21, 2015

October 9, 2015. Ethan Wolff-Mann. Time.com. Mobile Payments Showdown: Apple Pay vs. Android Pay vs. Samsung Pay http://time.com/money/4068133/apple-samsung-android/ Retrieved Date: October 21, 2015

September 29, 2015. Dan Howley. Yahoo.com. Samsung Pay vs Apple Pay vs Android Pay: Which Should Replace Your Wallet? https://www.yahoo.com/tech/samsung-pay-vs-apple-pay-vs-android-pay-which-224028473.html Retrieved Date: October 21, 2015

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