Samsung (KRX: 005930) Joins With Mastercard Inc (NYSE:MA) for Mobile Payments in Europe

Samsung electronics

Samsung Electronics Co. Ltd announced Thursday it’s partnering with Mastercard Inc for its mobile payments feature. Later this year, the payments provider will assist in launching Samsung Pay in Europe as the smartphone maker looks to limit Apple Pay’s success.

Samsung vs. Apple in Europe

European consumers can soon use their Samsung mobile devices to purchase everyday in-store products at payment terminals with NFC and MST technologies.

Due to MasterCard Digital Enablement Service (DMES), users will simply and quickly active their credit, debit, reloadable prepaid and small business cards for use with Samsung Pay. European issuers of the card will allow users to connect to and install Samsung Pay for customers. It’ll also protect against possible criminal use.

Samsung Pay is currently being tested out in South Korea. The company expects a full launch in both South Korea and in the United States within the next month. Samsung is working with European banks and companies to bring Pay to the continent.

Javier Perez, president of MasterCard Europe, noted that its relationship with Samsung will help facilitate global growth and adoption of connected mobile devices. Perez added European consumers have been leading the acceptance of new ways to shop, buy and pay. This collaboration will create a safe and easy way to pay, says Perez.

Samsung Pay was revealed during March’s Mobile World Congress. It was Samsung’s official entrance into the industry of mobile payments. It thinks it can make a dent in the market since Apple Inc’s  Apple Pay only reaches 10 percent of U.S.-based merchants.

Samsung is looking to ramp up its competition with Apple. It was reported the South Korean manufacturer would be slashing prices and introducing new smartphones.

Can Apple Pay be Successful in Europe?

Apple CEO Tim Cook confirmed earlier this year that Apple Pay will be accepted across Europe by the end of the year. Although there have been multiple reports of Apple Pay launches, Cook isn’t rushing into the market and is instead taking the gradual route.

In February, Visa Inc  announced its European payment terminals would be functional with Apple Pay. It was also reported that British banks would be introducing Apple Pay soon.

Despite Apple Pay’s plans to be a major force in Europe, some pundits are critical over the move. Kirk McElhearn, senior contributor to MacWorld, wrote late last year that European consumers will say “meh” to Apple Pay. He cited advanced chip-and-PIN technology and the lack of fraud in the region.

“So, it’s clear that, in the United States, where people have many cards, and where security is behind the times, Apple Pay will make a big difference. But over here in Europe, it just won’t be that big a deal.”

Apple Pay launched in mid-July in the United Kingdom. Barclay’s PLC , First Direct and HSBC Holdings noted its adoption of the mobile payments system.

So as Samsung Pay competes with Apple Pay, Microsoft Corporation  will start to challenge Apple Pay.

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Adam Green is an experienced writer and fintech enthusiast. He he worked with LearnBonds.com since 2019 and covers a range of areas including: personal finance, savings, bonds and taxes.


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