Huge Popularity: 80,000 Credit, Check Cards Registered on Samsung Pay 5 Days after Launch | BusinessKorea

Monday, July 25, 2016

A model uses Samsung Pay with the Galaxy Note 5.
A model uses Samsung Pay with the Galaxy Note 5.
SEOUL, SOUTH KOREA
26 August 2015 - 11:45am
Cho Jin-young

Samsung Pay is showing signs of tremendous popularity. More than 80,000 credit or check cards were registered just five days after its release, so the mobile payment service is considered to have succeeded in attracting early users.  

According to sources in the credit card industry on Aug. 25, more than 10,000 credit or check cards were registered on Samsung Pay on Aug. 20, its launch date. Since then, the number of card registrations has increased starting from Aug. 22, and about 80,000 credit or check cards are believed to have been registered as of Aug. 24. Observers say that around 20,000 credit or check cards issued by large credit companies have registered.

The credit card industry thinks that Samsung Pay's early popularity is encouraging. In particular, the success of a simple payment service developed especially for offline use by attracting over 10,000 credit or check cards in just one day has special meaning at the moment. Most simple payment services like app cards or Universal Subscriber Identity Module (USIM)-based mobile cards are only used online, and thus it is difficult for the offline simple payment market to grow. In order to use USIM-based mobile cards, led by BC Card and Hana Card, offline, NFC-enabled terminals are needed, but not many affiliated stores have them. That explains why simple payment services have encountered difficulties in expanding users. Among the 2.3 million affiliated stores in the nation, only 500,000 reportedly have NFC-enabled terminals. App cards, on the other hand, do not impose a burden on affiliated stores, since bar codes and QR code payments are both possible. However, app cards haven't been met with a very positive consumer reaction due to the complex nature of their use.

Experts are saying that Samsung Pay's early success lies in the fact that it is convenient to use, thanks to the fingerprint identification method. In addition, the service can be used anywhere, since it is based on magnetic secure transmission (MST) tech. An official at a credit card company noted, "Since Samsung Pay is an MST-enabled service, it can be used in most affiliated stores. I think that it played a decisive role in attracting users."

On top of that, the huge popularity of the Galaxy Note 5 and the Galaxy S6 Edge Plus, which support Samsung Pay, is cited as a favorable factor. More than 100,000 units were sold only four days after their introduction to the nation. Considering that Samsung Pay is available on the Galaxy Note 5, Galaxy S6, Galaxy S6 Edge, and Galaxy S6 Edge Plus, industry analysts think that the number of users will further grow, stemming from the handset replacement cycle.

Categories: 

Copyright 2013 BusinessKorea Co., Ltd.
301 Samdo Building, 12-1
Yeoido-dong, Yeongdeungpo-gu
Seoul, Korea 150-010
Tel: +82-2-578-3220
Fax: +82-2-578-3224
Email: contact@businesskorea.co.kr