Will Samsung reign in the mobile payment market?

Published on 19 February 2015 by in Latest News

A report released by Deloitte predicted that 2015 would be the ‘tipping point’ for mobile payments. With the announcement that Samsung is set to acquire mobile payments start-up LoopPay, marking the start of Samsung going head to head with rivals such as ApplePay, Google and Paypal.

Samsung have announced that they intend to launch a digital smart wallet, which will offer services similar to its competitors to enable customers to pay for their goods via their mobile phones. The Deloitte report estimated that, this year, five per cent of the world’s 600 million equipped smartphones will be used to make an in-store purchase at least once a month: a 1,000 per cent increase on 2014. Deloitte predicts that by the end of the year, one in 20 smartphone owners will have made a mobile payment with their phone.

iStock 000053007224 Small 251x300 Will Samsung reign in the mobile payment market?LoopPay was founded in 2012 and relies on magnetic secure technology, which 90% of checkout counters already support according to Samsung. This already places the technology firm ahead of rival Apple, since LoopPay should work with most retailers’ existing payment terminals, whereas Apple Pay requires NFC technology to be installed.

numero believe that the key selling point of mobile payments to consumers is that they will streamline the checkout process, making their experience easier. Simplicity should be at the forefront for retailers when considering their processes. The key differentiator for Samsung’s LoopPay is that it offers a digital wallet that can store and use a variety of cards with magnetic strips, including debit and credit cards, private store cards, loyalty and gift cards.

JK Shin, president and head of IT and mobile division at Samsung Electronics said, “This acquisition accelerates our vision to drive and lead innovation in the world of mobile commerce. Our goal has always been to build the smartest, most secure, user-friendly mobile wallet experience, and we are delighted to welcome LoopPay to take us closer to this goal.”

After Samsung’s BK Yoon promised the firm would invest $100 million to make every single Samsung product connected to the IoT, at this year’s Consumer Electronics Show, it is no surprise that they have stepped into mobile payment technology. This also increases speculation that Samsung plans to include mobile payment technology in its next smartphone, which is expected to be announced on the 1st March at the Mobile World Congress in Barcelona.

As the trend accelerates, numero believe it’s important for brands to not look at mobile payments as just an exchange or purchase but to consider payments as part of the overall customer journey and experience. Mobile payments hold a lot of promise for both the consumer experience and merchant. Easier payment solutions will benefit retailers as consumers will be willing to share their personal data in exchange for a simpler and better service. It was originally thought that Apply Pay would be the tipping point for in introducing mobile payments as the norm, but could it in fact be Samsung?

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