Epic deal, order your S24/S24+ or Galaxy S24 Ultra! Aramid Fibre goodness - Get 15% discount on Thinborne cases!

SamMobile has affiliate and sponsored partnerships. If you buy something through one of these links, we may earn a commission.

Notifications
    News for you

    Apple forces Samsung to drastically change its Samsung Pay strategy

    Pay
    By 

    Last updated: June 28th, 2023 at 11:20 UTC+02:00

    Samsung Pay was launched in 2015, and it has been close to eight years. Over the years, Samsung partnered with dozens of banks and card providers worldwide to bring easy mobile payments to consumers. However, the company has decided to drastically change its strategy over the past few months after the launch of Apple Pay in South Korea.

    Samsung may charge card companies a fee per payment but offset a part of those charges with marketing support

    The South Korean firm has never charged banks and card issuing companies to make their cards compatible with Samsung Pay. However, Apple charges financial institutions for Apple Pay compatibility. Now, even Samsung will start charging fees to banks for Samsung Pay. However, according to a report from Pulse News, Samsung is working on a marketing strategy that returns an amount of the fees it charges card companies. That amount can vary depending on the card payments, though.

    This new strategy is similar to marketing support offered by global payment processing companies like MasterCard and Visa to their partners. The fee structure is yet to be fixed by Samsung, and the company is likely to take a variable pricing approach. The company could factor in things like the market share of the card issuer and the volume of payments.

    Samsung has reportedly notified around 10 card companies about the end of the automatic extension of previous contracts. It means that the South Korean firm will renew contracts after factoring in charges for using Samsung Pay. If it charges a 0.15% fee per payment like Apple, card companies may have to pay KRW 70 billion (around $53.5 million) in fees per year. It remains to be seen how many card companies will stay with Samsung Pay after these changes happen.

    Pay AppleSamsung Pay

    You might also like

    Samsung’s foldable displays failed Apple’s durability tests, report says

    Samsung’s foldable displays failed Apple’s durability tests, report says

    While Samsung and Huawei are said to be preparing to explore additional foldable phone designs later this year, Apple has reportedly left the game due to concerns regarding the durability of foldable screens. A new report via Naver says Apple has been experimenting with foldable phones from other brands, including Samsung. The Cupertino giant has […]

    • By Mihai Matei
    • 2 days ago
    Samsung Display is one step closer to Gen 8 OLED production

    Samsung Display is one step closer to Gen 8 OLED production

    Samsung Display is one step closer to manufacturing Gen 8 OLED panels for PCs and tablets. A new report from Korea states that the tech giant has contracted companies to construct the chambers where its first Gen 8 OLED deposition machine will start producing panels next month. According to The Elec, these chambers at Samsung […]

    • By Mihai Matei
    • 3 days ago
    Mark Zuckerberg says Meta Quest 3 is better than Apple Vision Pro

    Mark Zuckerberg says Meta Quest 3 is better than Apple Vision Pro

    The CEO of Meta, Mark Zuckerberg, has posted a video on Instagram where he has shared his views on the Apple Vision Pro after trying out the mixed-reality (MR) headset and how it compares with the one MR headset from his company, the Meta Quest 3. While Mark said a lot of things about the […]

    • By Abid Iqbal Shaik
    • 3 days ago
    Apple is losing one of its most senior product designers from the Jonny Ive clan

    Apple is losing one of its most senior product designers from the Jonny Ive clan

    Jonny Ive had long been the face of Apple's industrial design. We'd see him explain the design choices made for Apple products in his impeccable British accent at launch events. Ive's vision aligned with that of Apple co-founder Steve Jobs and the two famously got on very well. So it was a big deal for […]

    • By Adnan Farooqui
    • 4 days ago
    EU won’t force Apple to open up iMessage to other messaging platforms

    EU won’t force Apple to open up iMessage to other messaging platforms

    In September 2023, the European Commission opened an investigation to determine if Apple’s iMessage qualifies as a Core Platform Service. Today, the agency has concluded that the messaging platform doesn’t qualify as one. It means that Apple will not have to open iMessage to other messaging platforms, such as Messenger and WhatsApp. This is a huge […]

    • By Abid Iqbal Shaik
    • 4 days ago
    iPhone 16 Pro could offer higher storage than Galaxy flagships

    iPhone 16 Pro could offer higher storage than Galaxy flagships

    Samsung ditched the microSD slot on flagship Galaxy smartphones back in 2021. Without the option for microSD expansion, Samsung's flagship phones are on par with Apple's iPhones when it comes to storage choices, something the Korean giant's diehard fans still haven't forgiven it for. Back in 2021, Apple even offered more storage options than the latest Galaxy […]

    • By Abhijeet Mishra
    • 5 days ago