Analyst: Samsung Pay could leapfrog Apple Pay, Android Pay

“Samsung’s new mobile payments system could spur greater adoption of mobile payments than what rivals Apple and Google have been able to achieve thus far, Moody’s Investors Service said Monday,” Patrick Seitz reports for Investor’s Business Daily.

“It will debut in the U.S. on Sept. 28. It also plans to roll out the service in the U.K., Spain and China,” Seitz reports. “Samsung Pay will be installed in new handsets starting with the Galaxy S6 Edge Plus and Galaxy Note 5, which will go on sale in the U.S. and Canada on Friday. Samsung also will provide a software update including Samsung Pay for its current Galaxy S6 and S6 Edge phones.”

“Samsung Pay works with both MST (Magnetic Secure Transmission) and NFC (Near Field Communication) technologies, allowing it to be broadly adopted without retailers having to upgrade their checkout hardware. By contrast, Apple’s Apple Pay requires retailers to have NFC terminals,” Seitz reports. “Samsung Pay ‘will give Apple Pay and Android Pay a run for their money,’ Moody’s analyst Gerald Granovsky said in a report Monday. Samsung Pay ‘will work on nearly all existing credit card readers and will not require retail point-of-sale terminals to be upgraded to near field communication (NFC) capability. This will differentiate Samsung Pay from Apple Pay and Google’s Android Pay, which only work in locations where NFC terminals are turned on and the merchant has elected to accept NFC payments — at this point, a relatively small percentage of retail checkouts.'”

Read more in the full article here.

MacDailyNews Take: iCal’ed.

Moody’s analyst Gerald Granovsky’s operative phrase is “at this point.” In mid-October, less than a month away, the fraud liability on magnetic swipe transitions shifts from the credit card companies to the retailers in the U.S. Hence, stores will upgrade to terminals that accept cards with embedded chips or NFC payments like Apple Pay.

The hidden brilliance behind the timing of Apple’s adoption of NFC – September 12, 2014


  1. If Samsung Pay actually rolls out quickly, this would only really give them 2 months or so of ‘advantage’ since in the U.S. all retailers are required to upgrade their POS readers with at least the chip readers, NFC will most likely be another feature common to those terminals as well as the traditional magnetic strip for backwards compatibility. The true test will come next year as to whether people will continue to prefer physical cards with the new chip tech that tokenizes all transactions to using a NFC payment system ala Google, Apple or Samsung.

    1. US retailers are not required to upgrade to chip readers but if they don’t the liability falls on them. Not all will upgrade to NFC terminals.

      MST is not aimed at the US but at Asian countries that have not gone to chip and/or have no near term plans to do so.

      1. A lot of third world countries are better prepared to use NFC and new terminals than the US, including MEXICO and many south america. I know I live in Mexico & travel south.
        Today apple pay works on many places as long as it is with a USA Card.
        Banks in other countries never like to be liable so vendors keep up to date on safer tech

      2. Placing liability on the vendor for not upgrading is a good policy. As I understand the tech behind Samsung Pay the data transmission occurs through a special coil antennae in the newer Samsung smartphones derived from LoopPay’s tech. This allows any MST reader POS that doesn’t need a physical switch to turn on the reader (e.g. gas pumps and some POS terminals) to receive the tokenized card data as if a physical card was swiped so in most cases the currently installed MST POSs will work fine with Samsung Pay pending a special software update.

  2. Nonsense; magnet stripe thing is old technology that gets phased out, and there is nothing better in Samsung Pay than Apple Pay. It is worse: Samsung knows what, where and when you buy, unlike Apple. And since Apple has bigger market share in USA, there is no way for Samsung Pay to leapfrog Apple Pay.

  3. They have to actually sell phones for Samsung Pay to work.

    Apple already sells the most volume of phones for a given model.

    So if you want to play with the little boys team, go with Shamshung.

    1. MDN really needs a site dictionary for its lingo and acronyms.

      ‘iCal’ed refers to an event of particular stupidity being saved in Apple’s Calendar application for future reference after the results of that event explode in one way or another.

      In this particular instance we will be counting the days after September 28th the first wholesale robbery of Samsung Pay user accounts occurs, the accounts then subsequently sold to crooks over the Internet.

      Samsung: In the business of enabling Hell On Earth, IMHO of course. 🙂

    2. Many people who visit this site are from all over the world but the thing that they all have in common is an interest in MacIntosh Computers, iPhones and Apple produced products. Apple produced a software calendar called iCal and MDN uses this software to record news items like this to recall at a later date.

  4. Samsung Pay works with both MST (Magnetic Secure Transmission) and NFC (Near Field Communication) technologies

    Meaning, that it enables OLD, CRAP Technology that has already been proven to save customer data IN THE CLEAR in RAM in Windows XP Embedded where any kiddie cracker can steal it through the store’s servers. How many MILLIONS of customer accounts have been STOLEN that way? At least 300 million. IOW: Samsung pay is utter IDIOCY.

    Congratulations Samsung! You bought crap technology. You’re screwing over your customers yet again. Another happy day! Maybe you should STOP before you let this POS technology out of your outhouse. 😛

    1. MasterCard and Visa actually generate a temporary 1-time use card number for the purchase. In other words, the person’s original card info is NEVER exposed. Even if you had a special magnetic scanner, the best information you could get would be a on-time temporary card number which does not ever relate again to that customer’s original bank or Credit Card Account. MasterCard and Visa then send the transaction to the customer’s original Credit or Debit card. The idea is interesting but will succeed or fail based upon licensing or the lack thereof.

      1. How does MasterCard and Visa KNOW that the card is being used in Samsung Pay? The Samsung phone will have to somehow communicate with the card issuer to receive the one time number and then coordinate its use to the system. Is this over the Internet? There’s your weak point.

        According to what I’ve read, putting one’s cards into Samsung pay does not REGISTER them with any bank or issuer. . . it’s just using your card’s number and magnetic stripe data without taking your card out with you. Some banks who use MasterCard and Visa DO have the capability to generate a single use card number, but it is by bank, and not every bank offers that functionality. That ability is not offered by brand system such as MasterCard or Visa, as you imply, because those brands are NOT in charge of issuing the card numbers or the accounts. Samsung has NOT made arrangements with any bank or issuer as Apple has. In fact, it’s one of Samsung’s selling points that Samsung Pay works with every bank and every card with a magnetic stripe. So you are wrong. . .

        Frankly, I think you are blowing smoke and do not know what you are talking about.

          1. Ah yes, because all knowledgeable people turn to the Huffington Post for accurate technical details of any product. /s

            I’ll do my own research and trust a few true tech websites (Ars, Anandtech, etc.) long before I believe any technobabble at The Huff.

          2. From the Huffington Post Article: “says the bank issuing the card needs to participate. If they don’t, some card holders might not be able to make mobile payments, even with the right phone. Samsung says participating banks will include American Express, Bank of America, Citi, JPMorgan Chase, and U.S. Bank.” Read what I wrote before.
            Samsung must contract with the issuing banks for THEM to provide the substitute number. As I stated truthfully, MasterCard and Visa do not do that, only the issuing banks can do that. Apple now has more than 3000 issuing banks participating, Samsung Pay has, what, Six? For the rest of your cards that Samsung says will work, it transmits the existing card number. It also transmits you personal data.

      2. INCORRECT. There are newer card readers that, thank gawd, no longer use Windows XP Embedded. There are newer RFID scanners that, thank gawd, don’t accept old school RFID chipped cards that spill out user identity and account data to any passing stranger with their own scanner.

        THE PROBLEM: Enabling the old school crap scanners and cards to continue being used. They must NOT. Stupid Samsung, as I pointed out very clearly, is ENABLING the bad old technology to continue. That’s not just bad. That’s detrimental to the future of credit card security.

        You have some reading to do.

  5. Samsung’s idea is good. The only way they overtake Apple is if they license it out. If they try to keep it for themselves, it will flounder. If they make it standard across new Android phones then it moves very very quickly to take a large chunk of the market. The only way for apple to crush them is to make their NFC more flexible. To Cripple NFC in such a way that bitcoin cannot be used easily and wirelessly is a bad move on Apple’s part. The ONLY reasons I am considering a non- Apple device are unlocked FM Radio and NFC Bitcoin support.

  6. The analyst must be a distant cousin of Baghdad Bob. He was the spokesman for Iraq who, as the missiles and bombs were raining down on him, kept insisting that everything was fine.

  7. Why would anyone use an Android phone with outdated OS for doing secure transactions which won’t be secure. The OS is already full of malware and to use a credit card on that platform will be easy pickings for all the credit card fraud people out there. Very bad idea.👎

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