Samsung gives sneak preview of Apple Pay rival at MWC 2015

Samsung and MasterCard announce mobile payments system Samsung Pay, compatible with older card terminals

Contactless payments at the Olympics

Samsung has announced its own Apple Pay rival at Mobile World Congress (MWC), working with MasterCard on the money transfer technology.

Set to arrive with the new Galaxy S6 device, Samsung Pay will let MasterCard customers use the smartphone for in-store transactions, marking Samsung's entry into the mobile payments arena alongside Google Wallet and Apple Pay.

While rival companies make use of NFC technology, however, Samsung Pay is compatible with older card terminals with magnetic-stripe technology, due to its partnership with LoopPay, aservice that allows shoppers to upload their credit card details onto a secure payments app, which can be used with payment platforms.

MasterCard's Ed McLaughlin said at the conference: "This is an exciting time for payments. As consumers are increasingly relying on their mobile devices in their everyday lives, we are exciting to work with an industry leader like Samsung to deliver new payment options to our cardholders around the world.

Advertisement
Advertisement - Article continues below
Advertisement - Article continues below

"We have been a pioneer of mobile commerce innovation for years and together we're delivering a digital payment experience that is both simple and secure."

One barrier to Samsung Pay, however, could be the fact that Visa is currently the only company to have agreed to work with LoopPay.

On the other hand, Samsung hopes its platform's compatibility with older payment technology may give it an edge over Apple and Google's services.

The system would still use the same tokenisation security feature as Apple Pay in addition to MasterCard's usual security measures, which hides customers' credit card details by generating a random number for each individual transaction.

"From the start, Samsung's vision for mobile payments and commerce has been centred on security, wide acceptance, and a simple user experience," Dr Injong Rhee, executive vice president at Samsung Electronics, added.

"With MasterCard's tokenisation services in conjunction with Samsung's unique MST (magnetic secure transmission) and NFC technologies, Samsung Pay makes secure contactless mobile payments possible at most NFC or traditional magnetic POS terminals.

Advertisement - Article continues below

"Samsung's KNOX security platform and fingerprint authentication make Samsung Pay transactions highly secure and easy to use."

It was previously reported that Samsung would be launching a payments system in 2015, after teaming up with LoopPay.

Apple Pay was unveiled late last year and is so far considered a success, being adopted by the majority of leading banks and credit card companies following its launch.

Samsung Pay will become available for US consumers in summer 2015, with a wider global rollout to follow soon after.

This story was originally published on 5/2/15 and has been updated since (most recently on 2/3/15) to reflect new information.

Featured Resources

What you need to know about migrating to SAP S/4HANA

Factors to assess how and when to begin migration

Download now

Your enterprise cloud solutions guide

Infrastructure designed to meet your company's IT needs for next-generation cloud applications

Download now

Testing for compliance just became easier

How you can use technology to ensure compliance in your organisation

Download now

Best practices for implementing security awareness training

How to develop a security awareness programme that will actually change behaviour

Download now
Advertisement

Recommended

Visit/business-strategy/33311/apple-launches-new-tv-gaming-and-finance-services
Business strategy

Apple launches new TV, gaming and finance services

25 Mar 2019

Most Popular

Visit/policy-legislation/data-governance/354496/brexit-security-talks-under-threat-after-uk-accused-of
data governance

Brexit security talks under threat after UK accused of illegally copying Schengen data

10 Jan 2020
Visit/security/cyber-security/354468/if-not-passwords-then-what
cyber security

If not passwords then what?

8 Jan 2020
Visit/policy-legislation/31772/gdpr-and-brexit-how-will-one-affect-the-other
Policy & legislation

GDPR and Brexit: How will one affect the other?

9 Jan 2020
Visit/web-browser/30394/what-is-http-error-503-and-how-do-you-fix-it
web browser

What is HTTP error 503 and how do you fix it?

7 Jan 2020