Samsung Galaxy at Austin City Limits Music Festival 2015 (Photo : Getty Images)
Samsung Pay would be able to compete better in 2016 with rivals Apple Pay and Android Pay with the addition of a functionality which the two have. Although it is unclear if Samsung would provide a comprehensive in-browser solution or an in-app for shopping.
Next year, Samsung Pay would allow users in the U.S. to shop online, adding to the advantage offer by the South Korean tech giant of its payment system being used as a credit or debit card with its utilization of a workaround that enables magnetic secure transmission (MST), reports Android Headlines.
This was made possible by Samsung's acquisition of LoopPay. With MST and the use of near-field communication technology, which the two use, Samsung Pay users enjoy more existing point-of-sale equipment compared to Android Pay and Apple Pay, says Thomas Ko, global co-general manager of Samsung, reports TechCrunch.
More Samsung phones would also have Samsung Pay besides the Galaxy S6, Galaxy S6 Edge, Galaxy S6 Edge Plus and Galaxy Note 5 which support the payment system. The Gear S2 smartphone would also support soon the system.
Besides Apple Pay and Android Pay, the online shopping feature would make Samsung Pay a direct competitor of PayPal and Visa Checkout service.
The expansion of Samsung Pay is a smart move, says James Wester, research director of Global Payments at IDC Financial Insights. It would help build customer habit which would benefit Samsung Pay when customers transact in stores using the system.
Samsung Pay is already enjoying advantage over its two main rivals when it comes to usability and widespread acceptance because of its MST. It could further dominate the competition with its offer of online shopping in 2016, Wester says.
