Editor in Chief
- Dec 30, 2010
- Reaction score
- Austin, TX
Just in case we weren't fully aware of how it's going to work, Samsung recently reiterated several points in order to elaborate on how their new mobile payment system, called Samsung Pay, will work for consumers. First, any Samsung Pay device can be used as a wireless NFC (Near Field Communications) mobile wallet at any locations which support that service. This is not really any different than Google Wallet, except that it uses Samsung's service instead of Google's.
What distinguishes Samsung Pay is that it also supports their new technology called Magnetic Secure Transmission (MST), which Samsung acquired from LoopPay. The great thing about MST is that it uses the existing infrastructure of Magstripe technology found at most retailers across the globe. This allows you to load your MST equipped, Samsung Pay compatible smartphone (currently the Galaxy S6 series) with money like a digital credit card. This can then be used at nearly any retailer, without the retailer needing to upgrade their existing system.
Samsung estimates that nearly 90% of retailers currently support at least one of these methods. Here's a quote with a few more details,
On the payment side, both NFC and MST use the same credit or debit card details stored on the mobile device. Visa and MasterCard accounts are already supported and Samsung is partnering up with additional banks and credit companies. Storing card data digitally sounds risky, but Samsung Pay replaces sensitive card data with a unique, secure token for each purchase, to help prevent fraud.
To make a purchase, users pull up the Samsung Pay app by swiping up from the home button and select a registered card to transfer the cash. Transactions are then authenticated using the fingerprint scanner, which acts as a second safety net to help prevent fraud.
What do you guys think of Samsung's solution? It sounds like Apple Pay will make it "cool" for the average consumers, while Samsung Pay will make it "easier" for us. Pretty snazzy eh?