Samsung Enters Mobile Wallet Market by Launching Samsung Pay

After months of predictions, Samsung launches its mobile payment service “Samsung Pay” in India

New Delhi: Samsung has stepped towards mobile payments services by launching Samsung Pay, targeting to vanquish the impact of demonetisation. These services will allow the customers to make offline transactions using their smartphones, which are currently being supported by some banks such as HDFC, Axis Bank, SBI and ICICI. Also, some other banks named Citibank and American Express will also join hands with Samsung in the coming weeks.

Samsung has made payment easier by introducing both NFC (Near Field Communication) and MST (Magnetic Secure Transmission). The customers only require a tab to the payment terminal, touch the fingerprint scanner for authentication, and complete the transaction. Samsung Pay is only available on Galaxy Note 5, Galaxy S7, Galaxy S7 edge, Galaxy S6 edge+, Galaxy A7 and Galaxy A5.

Samsung is the first company to launch a mobile payment service in India. Google is also offering a mobile payment platform in the form of Android Pay in the country.

TechSci Research depicts that with the introduction of Samsung Pay, which will allow offline transactions more easy and secure, the overall user experience would enhance several folds in India. This is expected to help in rapid growth of mobile wallet market in the country during coming years.

According to recently published report by TechSci Research, “India Mobile Wallet Market By Application, By End User, Competition Forecast & Opportunities, 2012 - 2021”, the market for mobile wallets in India is projected to grow at a CAGR over 50% during 2016 – 2021. Evolving technologies, secure authentication process, rising adoption of online payments and growing e-commerce transactions are anticipated to significantly boost India mobile wallet market in the coming years. Banking sector accounted for the largest end use sector in the country’s mobile market in 2015, followed by retail, telecom and transportation sectors. Northern region accounted for the maximum number of mobile wallet users, owing to highest number of retail stores choosing payment through mobile wallets in the region’s Tier I, Tier II & Tier III cities. Few of the major companies in India mobile wallet market include One97 Communications, One Mobikwik, ItzCash, Oxigen, among others.