Samsung’s mobile payment system Samsung Pay has hit the ground running in South Korea and the results show a lot of promise as the company prepares to launch the service in the United States.
Only last Wednesday did the media report that Samsung Pay has 25,000 subscribers but now -- less than a week after -- Business Korea reports 500,000 users.
The service has been active in the country for less than a month now. "If this trend continues, it seems to be only a matter of time to surpass 1 million subscribers in 1 to 2 months", it says in the report.
It’s no wonder that the company is looking to expand its service to other countries. China, The United States, Spain and the United Kingdom are all on Samsung’s expansion list.
Samsung has already secured distribution networks by forging partnerships with major financial companies overseas. In the US, the tech firm is a partner company of Bank of America, US Bank, Visa, and MasterCard. In China, Samsung is finalizing its partnership with China UnionPay, the largest card issuer in China.
Things get better, though. Samsung’s recently announced smartwatch, Gear S2, is said to support Samsung Pay starting with November.
Samsung Pay is a mobile payments service developed from the intellectual property of LoopPay, a crowdfunded start-up company that Samsung acquired in February 2015.
SamsungPay incorporates technology by LoopPay known as MST -- Magnetic Secure Transmission. It transmits card data to the pay terminal’s swipe slot using an electromagnetic field, causing the terminal to register it as if it were a normally swiped card.