Samsung has tied up with several banks and payment gateways in India. The list includes ICICI Bank, HDFC Bank, SBI, Standard Chartered, Citi Bank, and American Express.
Samsung launched its mobile payment service, Samsung Pay, in India on Wednesday. Samsung Pay will be available across the flagship Galaxy smartphones for now which includes the Galaxy Note 5, Galaxy S7, Galaxy S7 edge, Galaxy S6 edge+, Galaxy A7 (2016) and Galaxy A5 (2016), Galaxy A7 (2017) and Galaxy A5 (2017). Plus, the Gear S3 will also support Samsung Pay.
Samsung has tied up with several banks and payment gateways in India. The list includes ICICI Bank, HDFC Bank, SBI, Standard Chartered, Citi Bank, and American Express. Its network partners are American Express, Visa, and MasterCard, while Pine Labs is the Acceptance partner for PoS machines.
Finally Samsung has also tied up with mobile wallet Paytm for payments, and will be adding UPIs support via Axis Bank in the coming months.
“The idea is that everything is part of the smartphone. With Samsung Pay, your debit cards, credit cards, mobile wallets will all be in one place. We have always supported Make in India, and with Samsung Pay we are doing meaningful innovation in India. We have worked closely with banks, payment gateways, card companies, and even mobile wallets in India,” said HC Hong, who is President and CEO of Samsung Electronics SouthWest Asia.
“When we studied attitudes towards mobile payments in India, we found some barriers in acceptance among the consumers. The barriers were around security, ease of use and acceptance. With Samsung Pay, we’ve tried to overcome most of these issues,” said Asim Warsi, senior vice president at Samsung India.
Warsi pointed out that Samsung Pay uses three levels of authentication: One is fingerprint authentication for authorizing payment, two being Card Tokenization, and finally Samsung’s own security feature called Samsung Knox. Samsung says it doesn’t really store the actual credit card number, instead with Tokenization a token number is stored as a placeholder by the company.
Samsung Pay will not require merchants to upgrade to a different PoS machine, any machine with MST technology will be compatible with the eligible Samsung devices. Samsung Pay uses NFC (Near Fields Communication) as well as MST (Magnetic Secure Transmission) to make wireless payments. So essentially a user can just hold their Samsung smartphone next to a PoS machine, and the choose the card or wallet they want to make a payment with, and it will be detected by the machine. After that, the user can type in the amount they need to pay, enter their final transaction PIN, which is still required as per RBI norms, and the payment will go through.
Samsung becomes the first company to launch a mobile payment service in India, ahead of Apple Pay or Android Pay. However, the service is still limited to a select few Galaxy smartphones, and we’ll have to wait, and see how soon it is rolled out to other devices.