Samsung’s mobile wallet is making its way to China, no tunneling required. The international tech firm recently announced Chinese shoppers can now use their smartphones to pay for in-store purchases, and are therefore joining the Asian country’s trillion-dollar mobile wallet market.
Partnership With UnionPay
SamsungPay was launched in partnership With UnionPay, the same bankcard company that helped bring ApplePay to life. UnionPay credit and debit cards are currently the only cards linked with local Samsung phones at this time, with up to 10 cards allowed per device. SamsungPay is available in China on the Samsung Galaxy S7, Galaxy S7 Edge, Galaxy S6 Edge+, and the Galaxy Note 5 smartphones.
Injong Rhee, EVP and Head of R&D, Software, and Services of Mobile Communications Business at Samsung Electronics, said the company is pleased to partner with CUP in order to bring SamsungPay to Chinese consumers. Rhee said SamsungPay reception has so far been very positive, and the service has found success in both consumer adoption and availability.
The EVP also stated that Samsung hopes to make the payment option available to as many Chinese consumers as possible so that “everyone can have the opportunity to enjoy the simplicity, safety and convenience of this mobile payment solution."
Banking institutions currently participating in SamsungPay include the largest bank in the country, ICBC, as well as China Construction Bank and China Merchants Bank. Other major institutions such as Bank of Communications and Bank of China are said to follow suit.
In addition to the Samsung phones listed above, the Korean tech giant noted the possibility of adding more devices, including the Galaxy A5, A7, and A9, as they were also tested in public beta. Rooted devices do not support SamsungPay.
China’s mobile wallet industry is quite well established, making Samsung’s foray into the market a challenging one. Local services such as WeChat and AliPay are used for online shopping and transportation services among other things, and are now available for brick-and-mortar store use. Analysts recently remarked that AliPay and WeChat are so ingrained among Chinese consumers that introducing new mobile wallet options will be an “uphill battle.” However, Samsung has previously noted one essential factor working for them: the technology is applicable to a larger number of existing payment terminals.
“Simple and Safe”
Samsung also believes its mobile wallet option will work because it’s “simple, safe, and easy to use,” and that it works “virtually anywhere” in China that allows consumers to swipe or tap their cards. There’s no need to unlock phones or use special apps to access Samsung’s mobile wallet, which makes it arguably more appealing than earlier incarnations requiring these steps, such as Google Wallet.
The mobile wallet is similar to ApplePay in that it utilizes near field communication technology (NFC). Samsung’s version will also support the magnetic secure transmission technology used on standard credit card machines.
As of the fourth quarter of last year, Samsung was No. 6 in China’s smartphone market with a 7 percent share compared to Apple’s 15 percent. It will be interesting to see how the new mobile wallet option fares. SamsungPay is currently available in the U.S. and South Korea, and should enter the UK market later this year.