Samsung users can now use PayPal for preferred mode of payment in Samsung Pay.
They can make payments through the app and online as well as in stores using the Samsung Pay platform. Samsung made the announcement today, announcing its strategic partnership with PayPal. The arrangement will initially be offered for the users of Samsung Pay residing in the US. It will slowly be offered to other users in the rest of the world as well, according to Samsung.
Samsung Pay Platform
PayPal will be supported by Samsung Pay app at the point of sale. It will also be available as an option for paying in app and also for making online payments for the PayPal Braintree base.
PayPal Connected
PayPal wallet now stands connected with the Samsung Pay app. This will open up the availability of PayPal payment options to millions of shops. It will offer a competition to the likes of Android Pay by Google and Apple Pay. The technology will work with the NFC system at the point of sale and also with users having the mag strip tech.
Replicating a Swipe
Samsung Pay offers support for the MST technology or the Magnetic Secure Transmission. In this way, it can be similar to swiping a card. This will enable Samsung Pay to be used anywhere and in any shop that makes use of debit or credit cards.
Not so Popular
So far, Samsung Pay has not been very popular as a payment mode in the US, according to data collected quite recently. Boston Retail Partners have conducted a survey for payments made through mobile apps. The results show that Apple Pay is the most popular mode and has the maximum support from US businesses. 36% of the US merchants accept the Apple Pay technology. This is an increase from the 16% of last year.
Partnering with Android Pay
PayPal comes second after it had a partnership with Visa cards and MasterCard payments made in store. PayPal has also stated that it will be partnering with Android Pay, offering support for mobile payments through apps and also in retail shops (the brick and mortar ones).
PayPal and Apple Pay
Last week, PayPal also announced that it is expanding its connections with Apple as well. It will allow its payment platform to be offered as an option in the App Store purchase made through iPhones. This will be available in the US and also in 11 other countries. This news resulted in the rise of PayPal stock.
Tie-up with Samsung
PayPal is increasing its stock value through such partnerships. This is a better strategy than merely trying to compete with other mobile payment options. According to the CTO and the Head of R&D at Samsung Electronics, Samsung has an open model for collaborations and it offers the best experience to users. Samsung is very excited with the partnership with PayPal, as the latter is one of the biggest payment options in the world. It can offer global users an easy and powerful mobile wallet option.