Samsung Pay To Directly Challenge Apple Pay By Waiving Transaction Fees
In an attempt to get a leg up on Apple's mobile payment system, Samsung is reportedly not going to collect fees for its own rival service in Korea and perhaps in the United States as well. Dubbed Samsung Pay, the service is set to launch sometime this summer and will be in direct competition with Apple's Apple Pay system.
Initially Samsung was going to tack on 0.0015 percent fees to its partnered credit card companies, which include Shinhan Card, Samsung Card, KB Card, Hyundai, Lotte Card, NH Card, Woori Card, Hana Card, and BC Card. However, Samsung now has a grander plan of expanding its smartphone footprint, so it's doing away with fees, both for its partnered credit card companies and value-added network service providers and online payment service providers, Business Korea reports.
It's not yet known if Samsung will also drop mobile payment fees in the U.S., though a supposed industry source told the South Korean news outlet that Samsung's unlikely to charge fees stateside after deciding not to in Korea.
The move would eliminate Samsung's ability to earn a profit from fees. That being the case, it appears Samsung's strategy is to spread its Samsung Pay system to a larger number of vendors than would be possible by charging fees. In doing so, Samsung hopes to keep the lead in smartphone sales over Apple and companies like Xiaomi that are fast picking up market share.
Initially Samsung was going to tack on 0.0015 percent fees to its partnered credit card companies, which include Shinhan Card, Samsung Card, KB Card, Hyundai, Lotte Card, NH Card, Woori Card, Hana Card, and BC Card. However, Samsung now has a grander plan of expanding its smartphone footprint, so it's doing away with fees, both for its partnered credit card companies and value-added network service providers and online payment service providers, Business Korea reports.
It's not yet known if Samsung will also drop mobile payment fees in the U.S., though a supposed industry source told the South Korean news outlet that Samsung's unlikely to charge fees stateside after deciding not to in Korea.
The move would eliminate Samsung's ability to earn a profit from fees. That being the case, it appears Samsung's strategy is to spread its Samsung Pay system to a larger number of vendors than would be possible by charging fees. In doing so, Samsung hopes to keep the lead in smartphone sales over Apple and companies like Xiaomi that are fast picking up market share.
