Samsung has reportedly announced that it will not charge any commission to card companies for Samsung Pay transactions. Over the past few weeks, it has been reported that Samsung may start charging commissions to card companies, similar to Apple Pay. However, the company has denied that it will do something like that.
Samsung Pay remains free for card companies in South Korea, unlike Apple Pay
According to a report from Korea Herald, Samsung will not charge any fees to card companies that are compatible with Samsung Pay. With this move, the South Korean firm plans to counter Apple Pay. A few weeks ago, Apple launched Apple Pay in South Korea, and as usual, Apple charges a fee (around 0.15%) for each transaction made. And it was expected that Samsung would hold a meeting with all its partner banks and card issuers to change the terms of their agreement and introduce a transaction fee.
Samsung official said in a statement, said, “We have decided to keep Samsung Pay commission-free. Samsung Electronics is dedicated to enhancing the development of the domestic payment ecosystem by maintaining ongoing partnerships with local card companies, all while delivering the finest Samsung Pay service to consumers.”
Local card companies in South Korea were concerned that Samsung Pay would turn into a paid service, and it was estimated that they would have to pay anywhere between KRW 70 billion (around $55 million) and KRW 100 billion (around $79 million) in annual commission if that happens. It was also estimated that some of these charges would also make it to card users. After Samsung's decision in South Korea, the same can be expected in other countries where Samsung Pay is available.