Samsung Wallet is comparable to Apple Pay and Google Pay due to its integrated contactless payments, coupons, and ID. It is a platform for Samsung smartphones and wearables that enables you to pay for products and services without cash or credit cards by tapping your Samsung device close to a contactless payment terminal or by approving an online payment. With Samsung Pay, every transaction is protected by your bank’s fraud prevention and authenticated by fingerprint, pin number, or iris scan. More than 16 million users access Samsung Pay and also work with credit card readers that are not NFC.
On Tuesday, it was reported by a number of sources in the credit card business that Samsung Electronics was reviewing a marketing plan that would refund a portion of the fees it charges credit card issuers. The company that created the online mobile wallet platform Samsung Pay, Samsung Electronics Co., is considering a complementary business model whereby it charges credit card firms for using Samsung Pay.
“An intensifying competition against its emerging rival Apple Inc. has forced Samsung Electronics to charge credit companies fees,” said an unnamed official from a credit issuer. “Samsung Electronics, however, is mulling taking an approach that strengthens its partnerships with credit lenders, which have suffered financial difficulties.”
Although the price amounts have not yet been determined, industry sources predicted that Samsung Electronics would adopt a variable pricing strategy that would depend on cost reduction on variables like the market share of a certain credit card issuer or the number of card payments. For instance, if Samsung Pay levied a 0.15 percent fee for every transaction, then credit card firms would be required to pay an annual fee of 70 billion won. The charging process will be based on the result of the action.
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