The mobile payments market in India is likely to see another new entrant in 2017 — Samsung Pay.
A product of Samsung Electronics, Samsung Pay is a mobile payment and digital wallet service, similar to Paytm and Freecharge. The service also supports “contactless payments” by near field communication (NFC) and proprietary ‘Magnetic Secure Transmission’ (MST).
MST is a technology that can enable payment to be made on Point of Sale (PoS) terminals that only support magnetic stripe cards. The card data is transmitted via electromagnetic field to the PoS machine, making it act like a regular magnetic stripe card has been swiped through it.
Launched in August 2015, Samsung Pay is currently available in Australia, Brazil, Canada, China, Malaysia, Puerto Rico, Russia, Singapore, South Korea, Spain, Thailand and the USA.
It is expected to extend its services to other markets too in the coming months, which include UK, Turkey, Poland and Taiwan.
Samsung has reportedly tied up with American Express, according to a report by Mashable, to bring Samsung Pay in India. However, the company will also be looking to partner with other card payment giants such as VISA and Mastercard.
Samsung has recently introduced the Samsung Pay app in the Android Nougat update for the Indian Galaxy S7 series phones. The company has emulated the same in a security patch to an older Galaxy Note 5.
Latest official update (build number: N920GUBU3BQA3) for phablet Galaxy Note 5. It has included Samsung Pay in the package. Source: mysmartprice.com
Will it work in India?
The problem is most of the PoS devices in India do not support NFC and users might have doubts over MST.
Additionally, the service only works with few Samsung’s Galaxy smartphones such as Galaxy S6, Galaxy S6 Edge, Galaxy S6 Edge+, Galaxy Note5, Galaxy S7 and Galaxy S7 Edge. There are only 2.5 million Indian customers of the devices mentioned above.
However, Samsung would be positive about the launch after looking at the current situation of e-payments in India. In response to demonetization, many mobile wallet apps such as Paytm, Freecharge and MobiKwik have seen an exponential growth in users and transactions on their platforms.
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Kshitij runs The Patil Post and Zetabyte Solutions Pvt. Ltd. - a web development company focussed on E-Commerce implementations. Loves to eat, sell, write and talk. He is an avid reader, an enthusiastic traveller and trekker at heart.
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