Samsung Pay is getting closer to launch with the start of a trial in S. Korea this week. The U.S. launch is expected in August as this article predicts, or possibly in September as others have speculated:
“The trial service has been launched in partnership with Samsung Card for select customers in the country, users of the Galaxy S6 and Galaxy S6 Edge will be the first to have access to this payments service. This trial service will allow the company to put Samsung Pay through its paces before opening it up to the general public, that might happen next month as its arrival has always been linked with the launch of the Galaxy Note 5.”
Samsung Pay is different than Apple Pay as an example, due to the inclusion of Magnetic Secure Transmission (MST) transactions that allow merchants without contactless transaction capable terminals to accept Samsung Pay. This means acceptance will be much broader. MST payments is a capability that Samsung acquired through the purchase of LoopPay.
What will be interesting to see is the convergence of EMV cards and Samsung Pay. The FAQ’s on LoopPay’s web site doesn’t entire answer the question if EMV chip cards and MST transactions can work together:
You can add chip cards to your LoopPay account today and use them at mag stripe readers (MSR) just like any other payment card. However, if the merchant POS terminal is configured to accept EMV cards, you will be instructed to use the physical card to make the transaction via the chip and PIN card reader. LoopPay will soon be announcing a solution that will address this inconvenience
Overview by Sarah Grotta, Director Debit Advisory Service at Mercator Advisory Group
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