29 Mar 2016
“The reception of Samsung Pay since its launch has been extremely positive and the service has already seen tremendous success in terms of availability and adoption by consumers,” said Injong Rhee, Samsung’s executive vice president and head of R&D, software, and services of mobile communications business. “In compliance with national laws and regulations, thanks to cooperating with CUP and many banks, we ultimately want to make Samsung Pay available to as many consumers as possible in china, so that everyone can have the opportunity to enjoy the simplicity, safety and convenience of this mobile payment solution.”
“China UnionPay attaches great importance to the security and innovation of payment. In order to follow the tendency of mobile payment in both China and abroad, CUP cooperates with industry to bring safe and convenient mobile payment experience for millions card holders. With the joint efforts of banks and Samsung, based on the safety testing and certification by relevant national testing agency, CUP QuickPass starting Samsung Pay service will bring users safer and more convenient mobile payment choice.” said Hu Ying, Assistant President of UnionPay.
The service is supported by Samsung's Galaxy S7 and S7 Edge, Galaxy S6 Edge Plus, and Galaxy Note 5, with more devices expected to be added in the future. Also available in South Korea, the service is expected to launch later this year in Australia, Brazil, Canada, Singapore, Spain and the UK.
But Samsung has its work cut out for it in China, where Apple already has a head start as it launched its payment service there last month. Plus, it doesn’t ship nearly as many devices as it used to. In Q1 2015, it was the fourth largest Smartphone vendor in the country; in Q4 2015, it didn’t even make the top five.
Meanwhile, Apple was the second largest vendor in China with a market share of 14.6 percent, just behind Huawei.
Still, it can’t hurt Samsung to try breaking into the mobile payments market there Engadget notes that in Q3 2015 alone, transactions from phones ran into 18.17 trillion yuan (roughly $2.8 trillion), which represents a 254 percent growth year-on-year. A piece of that pie, however slim it may be, will still mean big bucks for the Korean firm.
China has the largest Smartphone market in the world, with 358 million people already paying for goods using their mobile device, according to the China Internet Network Information Center. Samsung’s entry includes support for select credit and debit cards from nine banks in the country, including China CITIC Bank, China Construction Bank, China Everbright Bank, China Guangfa Bank, China Minsheng Banking, China Merchants Bank, Hua Xia Bank, Industrial and Commercial Bank of China, and Ping an Bank.
Eventually, Samsung Pay will also work with Bank of China, Bank of Beijing, Bank of Communications, China Bohai Bank, Industrial Bank, and Shanghai Pudong Development Bank.
To make a payment with Samsung Pay, consumers simply swipe up from Home bottom whether the phone screen is locked, going black or in home screen; scan their fingerprint and pay, which is quite easy and convenient. In term of safety, Samsung Pay has three layers protection, which are fingerprint authentication, tokenization and KNOX. Because of innovative technology, Samsung Pay can be used on both QuickPass POS terminal with NFC and more POS terminals without NFC technology, which is more accepted than other similar applications with only NFC technology.
As the largest Smartphone market in the world, China represents a significant business opportunity for mobile-payments systems. The country's massive population of 1.35 billion and its growing middle class have created a lucrative market for companies like Apple and Samsung.
At the end of last year, 358 million Chinese had been paying for goods via their Smartphone, Reuters reported last month, citing data from the China Internet Network Information Center.