Samsung Elaborates on How Samsung Pay Works

[dgstorm]

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?

Source: AndroidAuthority

 

[leeshor]

Clear as mud The only thing I got from that is that it's a debit card system. Not sure about the MST tech.

 

[akhenax]

I read up on LoopPay, as as far as I can tell, it has of way of magnetically transmitting credit card data to the credit card reader, so you "pretend" you are swiping your credit card normally, but you use your phone instead. The phone has to have MST embedded in it for this to work. LoopPay makes addon tech for phones that don't have it embedded. Currently, the only phone that has it is the S6.

Smart job with Samsung buying LoopPay. Seems like a technology that has wide use potential.

 

[PereDroid]

I hate to say it but I still like Apples best for one reason: privacy. I know you kids today don't care about privacy at all. And I know that I already share plenty of information with Google...but tracking every purchase I make in the real world just seems to be going to far. At least with Apple Pay, Apple has NO idea what I am buying.
I assume Sammy Pay will work just like Wallet.
And I HATE the name "Samsung Pay", btw.

 

[alicia78]

NFC does seems to be good option...but privacy does matters

 

[lorasweet]

I'm more worried about security and of course, privacy.

 

[snapper.fishes]

Loop pay sounds exactly as secure or insecure as traditional credit card payment. However most of the world outside of the US is moving away from magnetic strip and towards chip and pin, so its usefulness is limited.

 

[Jonny Kansas]

The U.S. is moving towards chip and pin as well. We're just slow.

 

[PereDroid]

Saw this yesterday: 59% of Apple Pay users admit that they use Apple Pay because they believe it makes them look "cool and stylish".
I'm not making this up.
Cool & Stylish? Really? That might be the lamest thing I've read all week.
Personally, I feel kind of the exact opposite. The few times I've use Google wallet I feel more like a pretentious twit! LOL

TapaTurbo

 

[PereDroid]

Like all mobile wallets before it Apple Pay struggles with retailers Ars Technica

TapaTurbo