Samsung sees promise in the mobile commerce space due to growing consumer interest
Samsung has plans to launch its own mobile payments service in South Korea and the United States in September of this year, somewhat later than the company originally planned. After the initial release, the service, called Samsung Pay, will be released in Europe, China, Australia, and South Africa. These details were revealed by Samsung executive vice president of mobile commerce Dr. Injong Rhee during a recent Samsung event.
Company will compete with others in order to find success in the mobile payments space
Samsung has been working on developing a strong presence in the mobile commerce space for some time. The company believes that its Samsung Pay platform will have a significant impact on the mobile space, making it easier for consumers to make payments with their mobile devices. Samsung will be competing with Google, however, which already has a presence in the mobile commerce market and controls the Android operating system. The two companies may end up working together, however, which may help both overcome significant competition from companies that have established leading positions in the mobile commerce market.
Smartphone penetration is powering growth in the mobile commerce sector
Mobile payments have been growing more popular in recent years. Consumers favor using their devices to shop for and purchase products, as this is seen as a convenient practice. Growing smartphone penetration has made it possible for more people to participate in the mobile commerce space, but no single mobile payments platform has yet been able to find mainstream success in any market.
Samsung yet to reveal monetary model for Samsung Pay
Rhee suggests that Samsung generating revenue from the mobile payments service on a transaction-by-transaction basis is not the company’s goal. He claims that such a model will not be the main source of revenue for Samsung Pay, but was unable to comment regarding specifics about a monetary model for the mobile payments platform. Specific aspects of the service are expected to be released closer to the service’s launch date later this year.