Apple Pay Vs. Samsung Pay

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Apple Pay Vs. Samsung Pay There’ll Never Be One Clear Winner

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The mobile payments market is about to heat up.

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Samsung just announced Samsung Pay this month -- its own mobile payment system -- to compete with Apple Pay.

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And there are plenty of similarities.

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Both payment systems use near field communication (NFC) to make in-store purchases and use fingerprint sensors to authenticate purchases.

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And both use unique, secure tokens to transfer purchase data.

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But despite their resemblances, there are some key differences between Apple Pay and Samsung Pay.

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For example…

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In addition to its NFC capability, Samsung Pay can be used at payment terminals with traditional magnetic strip card readers.

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Apple Pay cannot.

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Between NFC and the magnetic strip payment processing, Samsung Pay will be compatible with about 90% of U.S. point-of-sale merchants.

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Meanwhile, Apple’s been building partnerships to spread Apple Pay adoption.

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More than 750 banks and financial institutions have signed up to bring Apple Pay to their customers in the U.S.

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Apple has a slight advantage right now because it launched Apple Pay back in October and is already building momentum.

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But Samsung Pay won’t be available until this summer.

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And although Samsung Pay and Apple Pay are competing systems, there are a few reasons why there won’t be one clear winner between the two.

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The mobile payments markets is already getting crowded with services from device makers, retailers, and carriers.

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Samsung sees its mobile payment system as a way to set itself apart from other Android devices.

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Samsung’s global smartphone sales have recently dropped, and it needs new ways to differentiate its high-end products.

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For Apple, things are a bit more simple.

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Unlike Samsung, Apple’s iPhone sales are moving in the right direction.

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Apple sees its payment feature as a way to keep new and existing users inside of its ecosystem, so it can sell more devices.

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Both Apple Pay and Samsung Pay have a good chance of taking off, if executed correctly.

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Worldwide mobile payments via NFC are expected to total $130 billion worldwide by 2020.

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Apple and Samsung are hoping all of that mobile payment spending leads to additional sales of their devices…

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Which would be a very good thing for companies and their investors.

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