In only a thirty days period the South Korean smartphone giant’s, Samsung, Pay service has managed above $30 million worth transactions. A promising figures for the firm, as it is gearing up for its digital payment service launch in U.S next week.
Samsung further said in its statement that it has processed more than 1.5 million total transactions so far, with 36 percent of users were active in the past month, while 10 percent of the users’ used Samsung Pay every day.
The interesting thing here is that 60 percent of the transactions made by the Korean consumers went through company’s “phablet” Galaxy Note 5.
The mobile payment market is booming up in the world. The pioneers like Apple Inc. (NASDAQ:AAPL) and Google Inc. (NASDAQ:GOOGL) are also carrying out such services in U.S. So it won’t be an easy task for Samsung to make a mark in the crowded digital payment market as soon as possible. Although Samsung got an edge over its competitors as its digital payment technology works both with near-field communication, or NFC, technology and credit card reading technology. Almost 90 percent of the U.S stores have deployed magnetic stripe card readers in their stores. But now the retailers are slowly moving to the next generation NFC technology.
Currently Samsung’s payment service is available on its flagship devices launched this year. Galaxy S6, S6 edge, S6 edge+ and Note5 phones, as well as the Gear S2 smartwatch are equipped with this technology.
Technology experts have long anticipated the bright future of the mobile payment solutions, yet U.S consumers are reluctant to use this new technology and mostly rely on the old method of paying bills through traditional credit and debit cards while using legacy magnetic stripe card readers.
Samsung’s new move is planned to diversify its business in the presence of its shrinking smartphone business. Samsung bought mobile payment service provider LoopPay Inc. earlier this year to fulfill its dream to foray into digital payment world.
Earlier this month Google rolled out its new renovated Android Pay, a digital payment service in U.S in a bid to attract more consumers. With its previous Google Pay service, the firm failed to impress users.
A concern for Samsung is that most of the U.S consumers are using Apple’s devices. So firstly Samsung will have to attract customers to adopt its innovations. A big ask for the firm in the presence of Apple and other giants.
