Samsung Pay planning to allow online payments in 2016
If 2015 was the year of mobile payment innovation, 2016 could be poised to be the year of online payments — at least for Samsung.
The smartphone company is planning to expand its new mobile payment option, Samsung Pay, to give consumers the option to pay online in the United States, according to reporting by Reuters.
Since it debuted on the company's Galaxy phones this fall, Samsung Pay has boasted to be the most widely accepted form of mobile payment. Despite its relatively recent entry into the market, Samsung Pay has been able to achieve this status by using technology that communicates with the magnetic swipe terminals most retailers already have in their stores, unlike Apple Pay, which requires merchants to install special near field communication (NFC) terminals.
Samsung Pay is looking to drive consumer adoption online, where customers are already accustomed to making digital payments.
Now, Samsung Pay faces the challenge of driving adoption on the consumer end. However, mobile wallets haven't picked up enough steam to get off the ground in the U.S. quite yet, which is likely a large part of why Samsung is looking for a solution online, where customers are already accustomed to making digital payments.
"For Samsung, moving online could be a smart move," James Wester, research director of global payments at IDC Financial Insights, told Reuters. "It will help them build customer habit and they can benefit from that when U.S. consumers transact in stores."
Samsung's move to the Web will not be uncontested, with the tech company looking to clear out space alongside established rival PayPal Holdings Inc, as well as other newcomers such as Visa Inc's Visa Checkout. Smartphone rival Apple also already offers online purchases of sorts, giving iPhone users the ability to use their mobile wallets to make payments on certain iOS apps.
In addition to allowing users to shop online, Samsung also hopes to expand the use of its mobile wallet by extending its capabilities to its lower-priced phones "within the next year," Thomas Ko, global co-general manager of Samsung Pay, said in an interview with Reuters.