When Samsung Pay went live in the US and South Korea, it amassed more than 5 million registered users and over US$ 1 billion transactions within 6 months of it’s launch.
It is slowly, but surely, following Apple Pay around the world and has since been released in China, Spain and Australia. On the 17th of June 2016, it launched in Singapore as well. Ever since it’s launch, I’ve been testing it with every credit card machine I can find, to see if I can finally do away with my thick wallet and plastic cards.
Historical attempts at digital wallets have had very limited success because they rely on NFC (Near field communications) technology to make contactless payments.
Which means they do not work with existing credit card machines being used by millions of vendors across the world. Retailers that want to support mobile wallets, have needed to make the extra investment of deploying NFC card readers in all outlets.
While the support for NFC has steadily increased, it still isn’t as ubiquitous as the magnetic (or chip based) credit card machines.
So why should retailers and customers make the additional effort (and investment) to adapt to digital wallets?
Samsung claims to have the answer. Samsung Pay not only works with NFC through contactless payment terminals, it also uses its patented MST (magnetic secure transmission) technology which allows it to work with (almost all) magnetic or chip based credit card machines.