IT-Finance Convergence
Samsung Electronics is gearing up to unveil a mobile money transfer service in the local market, following a mobile payment service. Samsung's move can be interpreted as a strategy to accelerate the convergence of IT with the banking sector, since the company is eager to jump on the IT-banking bandwagon.
Recently, an increasing number of companies are trying to launch services by combining the IT and banking areas. Apple is making efforts to enter the Korean market through Apple Pay, while global companies like eBay and Alibaba are competing with each other to increase their share of the mobile payment market.
After launching the mobile payment service Samsung Wallet in the country, the Korean tech giant is planning to debut a mobile money transfer service in partnership with Yelopay. An industry source said, “If mobile payments and money transfers are possible via Samsung phones, it will have special meaning in many ways.”
Currently, Samsung is providing mobile payment services in 29 countries, including North and South America, Europe, and Asia. It has been strengthening its customized mobile payment business through its localized strategies.
Specifically, the tech firm is providing a mobile NFC payment service via the Galaxy S5 in 25 countries such as the U.S., Europe, Brazil, and Hong Kong, in collaboration with PayPal. The service is based on the finger recognition feature of the Galaxy S5. The company is going to integrate this service into its wearable devices like the Gear.
As for the Chinese market, Samsung started a mobile NFC payment service in September in partnership with UnionPay. UnionPay is the largest credit card company in China, and represents more than 80 percent of the local market. It is the first time for the Chinese firm to partner with any handset maker. People can use the mobile NFC payment service on the Galaxy Note 3 and the Galaxy Note 4. Members of China Unicom can also use this service with not only the Galaxy Note 4, but also previous models like the Galaxy Note 3 and the Galaxy S4.
The Korean tech company is stepping up its efforts to build a mobile banking platform in other countries using localized strategies. For example, Samsung forged a partnership with Commonwealth Bank of Australia and Westpac Bank in Australia, with Standard Bank in Russia. Therefore, the success of its mobile money transfer service in the local market could create synergy in existing platforms.
The meaning of Samsung’s mobile money transfer service launch is not small in the local mobile banking market, where mobile carriers and financial companies are competing more intensely, as Daum Kakao has launched its own mobile money transfer service Bank Wallet Kakao and mobile payment service Kakao Pay.