Samsung Pay launches in Australia during CES
Samsung Pay began its operation in the US and Korea in 2015. However, to the consumer’s disappointment last year, there was no update about the availability of the mobile payment service in Australia.
The good news is the South Korean multinational conglomerate company recently launched the Samsung Pay app in Australia during the Consumer Electronics Show (CES) in Las Vegas. Mr. Ko, the global co-general manager and vice president of Samsung Pay, foresees the payment technology as profitable for Samsung in the country.
Since Samsung Pay is free and Samsung won’t charge any commission from banks for its credit card transactions, it is easier for the South Korean company to get strong support for the mobile app from the Australian banks.
On the other hand, Apple Pay is not for free and the Cupertino tech giant charges a 1.5 percent commission on credit card transactions which are made through the mobile payment application. The company has signed a deal only with the American Express in Australia.
“We don’t charge a fee to the banks, and so far that has been one of the reasons why the banks are very receptive to our propositions,” commented Mr. Ko of Samsung Pay. Samsung has already clinched deals with at least two Australian banks that support the mobile payment system. However, Mr. Ko declined to comment on the names of the two banks.
Google is yet another company set to launch its Android Pay app in Australia early this year. Similar to Samsung’s strategy of charging zero commissions, the American technology company does not charge credit card transaction fees from banks. It has ties with a few Australian banks including St. George, Macquarie and ANZ except the Commonwealth Bank, which has its own payment app that operates only on Android phones, reports Financial Review.
CNET reports that Samsung Pay uses a LoopPay technology, also called the Magnetic Secure Transmission, which functions by holding your phone close to a card swipe reader. The payment app also uses a near-field technology or NFC in it.
