Samsung is seeking to make the next stage of its ecosystem strategy extend beyond smartphones and into the wallet.
The company is entering the U.S. credit card market with the Samsung Galaxy Card, a move designed to deepen engagement with its ecosystem and expand its role in consumers’ everyday financial lives. Issued by Barclays U.S. consumer segment and operating on Visa’s network, the card will be available in both virtual and metal format.
Cardholders will pay no annual fee and can earn cash rewards on purchases, with the highest rewards available for spending at Samsung’s physical and online stores. Users will also receive 3% cash back on purchases made via Samsung Wallet, along with additional benefits.
“Samsung makes its move late in the game, as Chase is working on assimilating the Apple Card receivable, which is projected to be completed by January 2028,” said Brian Riley, Director of Credit at Javelin Strategy & Research. “Samsung will have plenty to do to propagate their wallet if they want to compete in the space that Apple dominates.”
Keeping Users Within the Wallet
One key objective of the rewards structure is to encourage greater use of Samsung Wallet, which can hold payment cards, tickets, passes, and digital keys. The broader mobile wallet market is moving toward becoming a central hub for a wider range of digital credentials, from membership cards to digital IDs.
The expansion of Samsung Wallet reflects a wider shift in how technology companies view digital wallets. Apple, for example, has continued to broaden the capabilities Apple Wallet in recent iOS updates. Not only can the wallet store payment cards and documents, it can support features such as splitting a bill by scanning a receipt, assigning items between friends, and sending payment requests through Apple’s peer-to-peer payment services.
A Cautionary Tale
Samsung’s entry into credit cards also comes with lessons from the challenges faced by earlier technology-finance partnerships. Apple launched Apple Card with Goldman Sachs in 2019, representing one of the investment bank’s most significant consumer banking initiatives.
Apple sought to create a seamless customer experience, including reducing friction in the application process. Goldman subsequently built a sizable consumer lending portfolio, serving customers across a range of credit profiles.
The partnership later faced operational and financial challenges, and Goldman Sachs ultimately existed the consumer credit card business by selling its approximately $20 billion apple Card portfolio to JPMorgan Chase earlier this year.
For Samsung, the launch highlights both the opportunity and complexity of combining hardware ecosystems, digital wallets, and financial services. But success will depend just on attracting cardholders. The company will also need to manage credit risk and create long-term engagement beyond the initial rewards offering.
“iPhone users still dominate the U.S. market, and the Apple Wallet is ingrained into its user base,” Riley said. “It is unlikely that iPhone users will migrate to Android simply because of Samsung’s recent move. In the next 16 months, it will be interesting to see how Barclaycard compares in terms of features to what Chase will launch in the near future.”
