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Samsung Pay Can Work at 30 Million Retail Locations, Compared to the “Thousands” of Apple Pay

galaxy s6 edge gold

When Samsung acquired LoopPay in February, we assumed they would attempt to include the ground-breaking mobile payment technology into their new phones, the Galaxy S6 and Galaxy S6 Edge. Yesterday, they confirmed as much with the announcement of Samsung Pay, a mobile payment system that works with both NFC-equipped terminals and also the average-every-day-terminals you see at approximately 30 million merchants around the globe. Compare that to the “thousands” that offerings like Apple Pay and Google Wallet work with and you have the new king of mobile payment systems. 

With Samsung’s acquisition of LoopPay, they picked up a technology called Magnetic Secure Transmission (MST), which is the key to this near universal acceptance. MST allows your phone to emulate a typical card swipe at credit card readers instead of hoping that a vendor has an NFC-ready terminal, which are still slowly rolling out and certainly not in most of your mom-and-pop shops. By acting similarly to a typical credit card swipe, you can see how innovative this technology truly is and why it might make mobile payments a success after years of slow adoption.

According to LoopPay, MST works like this:

MST technology generates changing magnetic fields over a very short period of time. This is accomplished by putting alternating current through an inductive loop, which can then be received by the magnetic read head of the credit card reader. The signal received from the device emulates the same magnetic field change as a mag stripe card when swiped across the same read head. LoopPay works within a 3-inch distance from the read head. The field dissipates rapidly beyond that point, and only exists during a transmission initiated by the user.

Like Apple Pay, though, paying with Samsung Pay requires the use of the Galaxy S6 and S6 Edge’s fingerprint sensor, coupled with the tap of the specific payment card. This not only provides a secure payment that needs your finger in order to work, but it allows Samsung to not keep any of your personal account numbers on a device.

Of course, Samsung Pay also works with NFC terminals, so if you find NFC payments to be quicker or more convenient than using MST, you can do that, assuming the terminal in front of you is equipped.

Samsung Pay will launch this summer in the US and Korea before expanding to other regions. For now, Samsung Pay will only be available on the Galaxy S6 and S6 Edge, though I would be shocked if it isn’t also included in the next Galaxy Note.

Via:  Samsung
  • M S i N Lund

    So this only works in those old-timey terminals, that hasn’t ditched the magnetic card-reader?

    I dont think i have seen one of those for years here in Sweden.
    Its all 100% chip-cards here.

    Wont this encourage vendors to keep old outdated unsafe terminals?

  • Mark

    Giving Samsung past history with advertisers I just don’t trust Samsung with my card info. So I’m not excited about Samsung Pay.

  • Higher_Ground

    I hope this works quickly and flawlessly, not because I want to use it, but because I don’t want to wait in line while the clerk and person paying try to figure it out 10 times in a row. It just reminds me of the VISA check card commercials with the old woman paying with a check at the grocery store.

  • gommer strike

    Now all Samsung needs to do, is perfect their fingerprint recognition technology. I would hate to be standing at the cashier there, swiping my finger over and over, trying to get it work, and holding up the line.

  • Jeremy

    Damn, this could be huge. I knew mobile payments were going to be popular in the coming years, but I had no idea how quickly they’d have the potential to happen. I work in the payments industry so this is pretty exciting for me.

  • Yes, because retailers are going to completely ignore the millions of iPhone owners with Apple Pay. Or better yet, millions of iPhone owners are going to drop the iPhone in the next 6 months and switch to Samsung because “millions of retailers”.

    Samsung and Apple can co-exist in the payments scene. I just want this stuff to be standard and not yet another foolish battleground for platform lock-in.

  • The Bilderbergers

    Do you think this will come to the Note 4? Anyone?

    • gommer strike

      It requires the fingerprint sensor, so yes the prerequisite technology is there. It all just comes down to whether or not Samsung decides to roll out the firmware to the Note 4. Oh, and you’d need to wait for your carrier to approve the update, so on and so forth.

  • LiiIiikEaBau5

    Apple gonna sue Samsung for this

    • wcjeep

      Samsung pay is using an entirely different technology than any other vendor. They also bought the company that created the tech.

    • gommer strike

      Read up on the differences between each company’s approach in the technology used, and you’ll see they are nothing alike.

  • GR

    For limited time only…

  • LionStone

    Very leery of Sammy’s software bugs, let’s see how well this actually works in the field before we all start jumping up and down 😉

  • Destroythanet

    This sounds great. Had Google Wallet on my old Galaxy Nexus and Apple Pay on my iPhone 6 and never found them very handy. This definitely makes it more practical to use.

  • jhouk

    In the realm of mobile payment, this is indeed a game changer as it makes Samsung Pay far more available to the consumer and less painful for retailers to change out and adopt new hardware to accept NFC payments. It will be interesting to so see if Samsung will face similar challenges from retailers that are a part of the MCX consortium that are currently attempting to fight the spread of Apple Pay in favor of their own CurrentC. These retailers can refuse to change out their current card readers to an NFC enabled one or even disable them to combat Apple Pay, but being that Samsung Pay works with current magnetic strip readers that would seem to break down that merchant wall. I wonder if the MCX can or will find a way to prohibit the use of Samsung Pay technology through software blocking or requiring a physical card to be presented POS? Or will this cause a problem for the plans of the merchant consortium and actually help pave the way for widespread Apple Pay or Google Pay acceptance?

    • glimmerman76

      Retailers have to go to EMV by oct 2015 or the retailer takes the fraud charges not the credit card company or bank. Most retailers are already replacing there existing terminals and most have built in NFC anyway.

      • jhouk

        You are correct on the timeline for EMV adherence, but that doesn’t mean that companies have to install readers that are EMV and NFC capable OR if they do have NFC capability that they have to have it turned on. Best Buy and CVS are examples of companies in the MCX that might have the readers installed, but don’t have NFC active to accept payment. That is why I am wondering if this technology through Samsung Pay will be able to force merchants to back off their stance or if they will find a way to restrict this too. I think we both agree that mobile payment may be the inevitable future, but a powerful lobby like this (especially anchored by Wal-Mart) could prove to be challenging.

  • Jeff C

    i still need to have my card with me? why wouldnt i just swipe my card then?

    • Chris

      You don’t need to have your card with you. This emulates a card swipe on your phone. No card needed.

      • Jeff C

        gotcha, i read “coupled with the tap of the specific payment card.” a different way

        • I read it the same way you did. The quote:
          “paying with Samsung Pay requires the use of the Galaxy S6 and S6 Edge’s fingerprint sensor, coupled with the tap of the specific payment card. This not only provides a secure payment that needs your finger in order to work, but it allows Samsung to not keep any of your personal account numbers on a device.”
          So how is it going to NOT keep my personal account numbers on the device AND require me to tap my card if I don’t have my card on me? This is really a confusing statement in the article.

  • dc

    too bad it’s still one of the ugliest devices. premium materials does not equal good design.

    • Kayungjoo

      hahahha I understand that this is your opinion, but the overwhelming first impression for many is that this is a very good looking device. Don’t let your hate of touchwiz overlook a good looking phone.

  • Malie Uchiha

    Hmm… This would probably be my next phone…if only it didn’t run touchwiz

  • NickA

    Here’s the deal though: It still transmits your card info (CC Number/Pin) and can still be compromised. That’s why Apple Pay is more secure. That info is never passed to the terminal so you don’t have to worry about the Russians stealing your data.

    • glimmerman76

      you sir need to understand payment systems. After oct 2015 chip and pin will be king. This tech can emulate chip and pin.

      Also who says they are not using a token system like apple pay. Samsung has been hush hush on how it works.

      • GodelianKnot

        You sir need to understand chip and pin. Chip payment doesn’t use a magnetic strip, it uses a chip with electrical contacts. Samsung Pay does NOT emulate that. Magnetic strip will be obsolete in 5 years.

        • glimmerman76

          5 years more like october of 2015. If a retailer does not update to chip and pin then they have to pay for the fraud not the cc company. Looppay is working on a solution for EMV. Most readers that you have to buy for EMV have NFC built into them.

          • I already did some reading regarding the transition for this year. It is not mandatory that retailers and businesses do away with magnetic stripes. It is only just to have the EMV readers in place while the phase out of the magnetic stripes begins. This is only the beginning of a process, you can’t simply ditch one technology in just a few months. Stuff like this happens extremely slow, and could take a couple years or more to be the dominant payment system. Especially since cards have been around for how long? Couple decades or more?

          • glimmerman76

            All my cards have been updated to emv I just asked and they gave me new cards. If you read visa and MasterCard’s time line its pretty agresive on time.

      • NickA

        They can’t use the same token system, if they did it wouldn’t work on existing terminals. Like I said above; I do this daily.

    • Kayungjoo

      You really need to read up on PCI compliance. It’s just as secure as having an actual credit card.

      • NickA

        Get a clue my man, then get a bank that catches erroneous transactions before your bank account empties. I don’t need to read up, I live and breath mobile transactions everyday.

  • Suicide_Note

    This sounds pretty cool. Assuming everything works as seamlessly as they make it sound, then good job, Samsung.

  • pyro74boy .

    I love what Samsung is doing to Apple. More reasons for Apple to cry I small a new lawsuit again from are great friends over at Apple LOL

    I WILL NEVER BUY ANYTHING MADE BY APPLE THE MOST OVERRATED COMPANY ON THE PLANET EARTH.

    • wondering

      What are they doing to Apple? Did we miss something?

      • pyro74boy .

        They’re making them cry like they always do.

    • turco320

      sound like a stupid fan

  • MichaelFranz

    I want to know more how the MSR/MAG Stripe tech works. I understand the tokenization etc but i want to know if there is a different sensor passing it or is it something that can be implemented another way. Either way this is my favorite part of the S6, this is something innovative. Finally closing the gap between mobile vs non-mobile payment.

    And witht he new tech – even though its only in samsung phones its easier to use because not much has to be done on the retailer end to accept it.

  • All the haters woke up a sleeping giant.

    • glimmerman76

      you know fully well googles pockets are deeper than samsungs. And if google had not built android Samsung would still be a small player in the phone game.

      • Yea their pockets are deeper but their hunger to compete isn’t. Samsung has been the biggest innovator and leader in Android for a while now and I don’t see then slowing down.

        • glimmerman76

          um yeah samsung is losing market share like mad almost 25% since the s1. The s6 is a nice phone and I give them props for it. Now after the flop that even samsung admitted aka the s5. That phone did not move the amount of units they thought it would. Then if you look best buy has been running 150 gift card for buying a note 4 note edge or s5. That tells you there setting on some major inventory they cant move. Also you tell me how samsung innovates since they have not changed the look in touchwiz since they made it. They just make minor tweaks. I was hoping for new icons on the s6.

          • pyro74boy .

            Samsung is not doing as bad as you claim. Sure sales where down on the S5 I’m not denying this but the S6 will be a huge hit for Sammy and you’re a fool if you think otherwise.

          • guest

            S6 will most likely sell better than S5, but i don’t think it’ll be a huge hit.

          • pyro74boy .

            Sorry but I strongly disagree with you as I have heard more then a few people say that the reason why they would not buy the S4 or S5 was because there was no change in the design. If that’s not enough even some of the tech experts are starting to get behind the S6 and these same experts are not huge fans of the old design. You can also bet that Apple is once again trying to do everything in their power to try to ban the S6 ASAP.

          • glimmerman76

            oh I think the s6 will sell but there is a catch 22 as some people only used samsung phones because of the removable battery and SD card. And yes samsung is doing that bad. At one time they commanded almost 32% of all android phones sold worldwide. Now its under 23%. its about a quarter of loss.

          • pyro74boy .

            Samsung had a few bad quarters last year yes and I never once denied this but come on for someone like you to judge and assume that just because the S5 did not sell as good as Samsung had hoped does not in anyway whatsoever mean that this is the end of Samsung it means that competition makes everyone better and that’s why the S6 was redesigned from the ground up. Every single company I don’t care who it is will have there good and bad days so quit all this hate on Samsung because like it or not they are still selling Samsung handsets and the S6 will be a huge hit for Samsung and will give the iphone more then a run for it’s money in at least in my opinion.

          • Losing market share at 25% and somehow still the biggest player in Android

        • Adrynalyne

          Biggest innovator? LOL.

          • What has any other OEM done that has brought huge attention to Android??

          • pyro74boy .

            Very well said my friend.

          • Adrynalyne

            Bringing attention is not synonymous with innovation. What innovation has Samsung brought, with exception of the Edge?

            Seriously, get your definitions straight.

          • If you were smart like you thought you’d know that the innovation brings the attention, duh. And come on man if you don’t know the things Samsung has done that other OEM’s and Google have copied to improve Android you are either out of the loop or too blind to see and sorry I’m not explaining it. Samsung has gotten Android the popularity it has today, Samsung continues to push the envelope with Android. Honestly if it wasn’t for Samsung Android probably wouldn’t get the recognition it has today. And you still haven’t answered the question. What has ANY other OEM done to push the envelope with Android. Samsung is constantly improving screen tech, constantly improving camera tech, just made new memory tech, software to improve battery life, using its own chips etc. come on man I can see not liking something but give props where they’re due

          • Adrynalyne

            So what innovation again, or will you continue to just talk smack? Improving tech is evolution on their part. Innovation is something totally new. Which is?

            Their socs are nothing special. They use Sony sensors like everyone else. Fingerprint scanner? Its been done. Samsung pay? De ja vue.

          • Ok cool

          • michael arazan

            Droid brought the Most to Android than anything

            My Droid 1 introduced me to Android as well as the Verizon Droid 1 commercials

          • You’re lot’s, I’m still waiting in an answer. What has any of them done that has brought huge attention to Android, what has any of them done to get the media talking? Better yet I’ll answer that for you. Nothing, zero, zilch!

          • Adrynalyne

            Who cares? Is this your come back for changing the subject? I laughed about the innovation comment and you talk about attention. What a joke.

        • wondering

          But they ain’t google. Their OS is not picking up so I don’t think they can create what google has in a mobile OS

          • Point is Samsung is making more noise and headlines in the Android world than Google is with its own product, that’s a problem for the founding company. And Tizen is still premature and not available anywhere but India and I think Russia who says in 5 years they won’t have a fully developed OS with all the feature they brought to Android and run off with it. I believe they can they hold most of the Android market, if they get a fully supported app store with active developers Google may be in trouble.

  • Samsung is going straight for the top.

  • CoolSilver

    Works everywhere that has a terminal without awkward guards over the keypad or built into something you can’t place the phone in alignment with the actual read head.

  • Meh. I don’t care what it’s called. I just can’t wait until it works in every phone, in every store.

    • Don’t hold your breath

    • JackMeOffski

      It also takes colour photos so you can update your avatar.

      • Samsung Pay has a built-in camera app? SOLD. I’ll be pre-ordering the GS6. Thanks man!

    • A service that handles all your financial transactions and personal information you SHOULD care what it does and how it handles such actions. Just saying.

    • MicroNix

      Don’t hold your breath. Google has had all the time in the world to perfect their payment system and just sat on it. They could have bought the company that Samsung bought and had the tech to do this with existing point of sale boxes but their efforts were “meh”. Too bad Samsung had to show them how its done….it would have been nicer to have this on all Android phones.

    • michael arazan

      Works at 30 million locations……… Just not in the US

  • JackMeOffski

    Smart move here by Samsung.

  • Defenestratus

    Really hope that this tech isn’t super locked down patent wise so that other Mfgrs (Moto) can put this tech in their phones.

    If samsung knew how to make money they’d license the tech out.

    • Good_Ole_Pinocchio

      Samsung wants to be as Vertical as possible. They won’t license out tech. They want you to buy their devices.

      • DanielMena9

        Let’s say the terms of the license require the app to still be called Samsung Pay. Imagine a Sony Xperia Z4 Compact with Samsung Pay LOL

    • Dlongb13

      Pretty sure Samsung knows how to make money.

    • Intellectua1 2x

      Now why would they do that, this is Samsung not Google. If other mfgrs wanted this tech they should’ve bought it

      • r0l

        It’s not unprecedented. Comes down to whether they want the additional revenue from the other OEMs more or less than the exclusivity.

    • gommer strike

      That’s a fantastic idea. Just as long as the licensees are required to refer to it as “Samsung Pay” 😛

  • Dlongb13

    First phone I have been truly excited to try since the Moto X (2013).

  • Mordecaidrake

    Now if only it worked with Google Wallet 🙁

    • Good_Ole_Pinocchio

      Want to use Google Wallet? Download it and tap away.

      • Dlongb13

        At all 12 locations. Only time I get to use it is at Babies R’ Us, it’s the only good thing about going there.

        • mike

          My girlfriend was shopping at Toys R Us the other day. I think I bought something just to use GW’s tap to pay. :-/

      • Mordecaidrake

        I did and do, but I can’t use it on non nfc terminals.

    • r0l

      Yes, hopefully Google’s newly announced platform will solve some of this when the details are revealed.

      • It won’t, it’ll still be NFC based they’re just adding a backend to it

        • glimmerman76

          are you sure. Sundar hinted at more yesterday in his interview.

          • I hope it’s more to it, I’d hate for Google to introduce NFC payments to the US market only to get clobbered by Apple and Samsung and fail at it

          • glimmerman76

            apple is not going to clobber anyone since they still have the same limitations as google wallet.

        • glimmerman76

          also remember samsung is allowing google to use knox. There maybe some behind the scenes patients samsung needs from google.

          • Daistaar

            Google is sharing it’s patients with Samsung?! OH NO!

          • glimmerman76

            I said MAYBE there is.

          • Daistaar

            Patients? Lol trollolol

    • glimmerman76

      there is nothing to say google wont find a way to make it work. With android pay coming out its going to be an interesting summer

  • Josh Martin

    So basically… the fail. Their finger print reader sucks compared to Apple’s (who I hear they hold a patent for…) sooooooo this will probably not catch on.

    • mmark27

      you don’t know that yet. It’s not a swipe anymore.

    • Dlongb13

      They completely redid the sensor. So while there is a chance it may not be as good, saying that it isn’t is merely speculation.

      • Brad

        Just can’t make some folks happy.

        • Dlongb13

          Some people just don’t want to be happy.

          • cdm283813

            The S6/S6 Edge is the result of the haters. So hate away so that they can make the S7 a hit.

    • Why are you here, apparently everything they said yesterday flew over your head like a bomb over Baghdad

  • mmark27

    This is a clutch feature to the S6/S6edge. It has me considering it even though I want nothing to do with that sealed up tiny battery, lack of SD, too much glass, and no waterproofing. Honestly surprised that Apple didn’t buy these guys out. It’s a real clever system and works everywhere.

  • mike

    This is a pretty neat feature, too bad Google didn’t snag them up and incorporate this into Google Wallet!

    • Good_Ole_Pinocchio

      Google doesn’t know what the hell they’re doing.

    • mmark27

      Needs hardware….hardware that only Samsung owns now…..

      • mike

        Right. Had Google bought this, they could have also implemented the hardware into a Nexus device like Samsung. Or better yet, licensed the tech out to other OEM’s so that all Android platforms could benefit from the technology. Not a huge deal as mag swiping will be going away soon, but I think it would help some users transitioning into mobile payments.

  • SuperDoge

    What happened to Google Wallet?

    • cadtek91

      Nothing?

  • MrToTo83

    I am looking forward to trying this feature, and see how well it works. Hopefully it works to the point where if I forget my wallet at home its not a big deal because it will work anywhere the card would. So little places have the NFC and I don’t always want to eat at McDonalds if i forgot my wallet.