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Apple Pay Vs. Samsung Pay There’ll Never BeOne Clear Winner
The mobile payments market is about to heat up.
Samsung just announced Samsung Pay this month -- its own mobile payment system -- to compete with Apple Pay.
And there are plenty of similarities.
Both payment systems use near field communication (NFC) to make in-store purchases and use fingerprint sensors to authenticate purchases.
And both use unique, secure tokens to transfer purchase data.
But despite their resemblances, there are some key differences between Apple Pay and Samsung Pay.
In addition to its NFC capability, Samsung Pay can be used at payment terminals with traditional magnetic strip card readers.
Apple Pay cannot.
Between NFC and the magnetic strip payment processing, Samsung Pay will be compatible with about 90% of U.S. point-of-sale merchants.
Meanwhile, Apple’s been building partnerships to spread Apple Pay adoption.
More than 750 banks and financial institutions have signed up to bring Apple Pay to their customers in the U.S.
Apple has a slight advantage right now because it launched Apple Pay back in October and is already building momentum.
But Samsung Pay won’t be available until this summer.
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.
The mobile payments markets is already getting crowded with services from device makers, retailers, and carriers.
Samsung sees its mobile payment system as a way to set itself apart from other Android devices.
Samsung’s global smartphone sales have recently dropped, and it needs new ways to differentiate its high-end products.
For Apple, things are a bit more simple.
Unlike Samsung, Apple’s iPhone sales are moving in the right direction.
Apple sees its payment feature as a way to keep new and existing users inside of its ecosystem, so it can sell more devices.
Both Apple Pay and Samsung Pay have a good chance of taking off, if executed correctly.
Worldwide mobile payments via NFC are expected to total $130 billion worldwide by 2020.
Apple and Samsung are hoping all of that mobile payment spending leads to additional sales of their devices…
Which would be a very good thing for companies and their investors.
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