Apple Pay is crushing Samsung Pay

“Along with the launch of its iPhone 6/6 Plus phones, Apple introduced its very own contactless mobile payment system known as Apple Pay. Unsurprisingly, with the launch of its own Galaxy S6 smartphones, Apple rival Samsung released its own, very creatively named mobile payment system known as Samsung Pay,” Ashraf Eassa reports for The Motley Fool. “Also, it would seem that Apple Pay is utterly crushing Samsung Pay.”

“Samsung recently bragged that its Samsung Pay service is now up to 5 million users and they have spent ‘over $500 million’ over the last six months,” Eassa reports. “In sharp contrast to this, Apple CEO Tim Cook recently said on the company’s January earnings call that customers ‘have spent billions of dollars with Apple Pay.’ Furthermore, Cook said that during the second half of 2015, the iDevice maker saw “a significant acceleration in usage,” claiming that the rate of growth during the second half was 10 times greater than that in the first half of the year.”

“Note that these results were recorded before Apple introduced Apple Pay to the China market earlier this month,” Eassa reports. “At the end of the day, I believe that Apple will continue to aggressively roll out Apple Pay worldwide, doing the necessary work to make sure that this service is an integral part of the iPhone ownership experience. Samsung will continue to try, too, but it will — like so many of the other features that it has introduced in its flagship devices over the years — merely be a gimmicky selling point so that it too can say that it has its own mobile payment service.”

Read more in the full article here.

MacDailyNews Take: Every me-too “feature” Samsung tries to knock off from Apple is inferior. Sometimes slightly, sometimes massively, but it all adds up. Call it a “compounding inferiority complex.” Versus the iPhone experience, Samsung phones are junk. Versus the iPad experience, Samsung tablets are junk.

That’s why we call them “Android settlers.” They settle for less than the best for no good reason. They cut off their noses to spite their faces.

BTW, the feeling of security that “Samsung Pay” engenders must be absolutely glorious. (smirk)

38 Comments

  1. I fully support Apple, would never purchase ANY ANY Samsung product…No TV No Washing machine No Refrigeration. Especially over the years they have not paid for copy Apple’s technology. I am all in APPLE.

  2. Apple is *not* however, doing a good job of telling people why ApplePay (tokenization + device ID) is so much more secure than the rivals Samsung Pay, Google Wallet, or CurrentC. Everyone I meet thinks it’s merely NFC and rivals are literally banking on that ignorance. Apple should have at least a webpage or youtube video to direct people to that shows people just how vulnerable their banking info is on the other platforms and how ApplePay guards it.

    1. You mean that ApplePay and Google Wallet doesn’t have some kind of tokenization to keep your credit card info private? It just hands over your credit card and other info for the business to keep in their computer system?

      That’s an actual question, I don’t know the answer. If someone does, please respond.

      1. Hi “The Other Steve,”
        This is a great question. There is a dedicated processor in the iPhone that generates a token for the purchase. Apple Store employees can demo how it functions in real life, but the basic take away here is that Current C uses a bar code to do the same thing that swiping a card does (no added security) and Samsung pay does what Current C does but without a barcode. It sends the credit card info via the NFC. Also not anymore secure than simply using a credit card. The iPhone generates a special pin that is different every time. This pin can’t be intercepted, and if it even were, being that it’s new every time, the pin would be useless to any hacker.

        1. I didn’t think Samsung Pay used NFC. I thought it used that goofy technology that communicates directly with the magnetic read head in the swipe slot. That would require the phone to broadcast something that the card terminal would interpret as a magnetic strip.

          ——RM

    2. They really don’t need to do a good job of telling people why it’s more secure, as witnessed by their complete and utter domination of the market. While social media teaches that going negative gets you the largest number of followers fastest, in marketing, you only go negative when you HAVE to. And if number two isn’t rapidly gaining on you, you don’t HAVE to. 🙂

      Plus, it’s not like users have to be “sold” on the security of Apple Pay over any other method… those other methods aren’t available if you have an iOS device and non-iOS devices don’t offer Apple Pay.

      As tech savvy users, yes, we’d like everyone to understand all the cool tech that’s behind the service we like. But, in the end, the fact that your average person doesn’t HAVE to know about how the tech works to use it effectively makes it the easiest and most reliable solution. Plus, that leaves a window for you to look like the “smartest man in the room” when YOU do the explaining 🙂

    1. @Justin Reese

      Sure, I’m happy to tell you. Android is ahead in OS market share because it’s free and it runs on the hardware of multiple OEM’s. The comparison is false when speaking about smartphone market share because it combines market share of Samsung, Motorola, HTC, Lenovo, etc as if there is one big Android OEM team. In spite of this, Apple Pay beats solutions like Google Wallet and Samsung Pay, because it’s a better designed solution that is targeted to a much more lucrative customer base (research how much more iOS customers spend then Android customers).

    2. Hi “The Prher Steve,”
      This is a great question. There is a dedicated processor in the iPhone that generates a token for the purchase. Apple Store employees can demo how it functions in real life, but the basic take away here is that Current C uses a bar code to do the same thing that swiping a card does (no added security) and Samsung pay does what Current C does but without a barcode. It sends the credit card info via the NFC. Also not anymore secure than simply using a credit card. The iPhone generates a special pin that is different every time. This pin can’t be intercepted, and if it even were, being that it’s new every time, the pin would be useless to any hacker.

    3. Sheer numbers are meaningless. You need to look at actual usage. There may be 10 Android phones to every iPhone, but an iPhone user get 10x more value and usage out of their iPhone over a longer period of time compared to a typical Android. iPhone users upgrade because they want to. Android users upgrade because they need to in order to continue having a phone that works properly.

  3. Admittedly, Android phones had 4G and NFC before iPhones, but Apple got the implementation right, which is what really counts. Once Android phones got 4G, the battery life tanked, which made removable batteries a necessity. And I don’t know exactly how NFC was implemented on Android, but I doubt it required authentication before transmitting payment information and it didn’t use tokenization.

  4. I’m all for it, and yet, sadly, I’ve only ever had TWO occasions to use Apple Pay since getting a 6S at launch. I would gladly use Apple Pay anywhere it was offered, but *nowhere* in my everyday encounters where I actually buy stuff (Home Depot, WalMart, CVS, groceries, deli, pizza joint, whatever) do I encounter a place that accepts it. Clearly, I don’t buy enough stuff! Bad consumer!

    I’m a huge Apple fan, and there are alternatives to the places I just listed that do accept Apple Pay, but I’m not going to travel literally miles out of my way to a different store just to use it. In the meantime, I do ask places (even though I know the answer) if they take it just to raise their awareness – if enough people ask for it at checkout, eventually that will get noticed and work its way up the chain.

    I urge fellow fans to do the same. Emails to companies are another tactic, but those just go into circular files. Make sure you ask for it every time you go – create the groundswell movement it will take to broaden its adoption.

    1. Don’t assume that a store doesn’t take Apple Pay just because it doesn’t say so, or even if there’s no NFC logo on the credit card terminal. Many stores take Apple Pay “unwittingly”, simply because the NFC is turned on by default. Always try your phone at least once in each new store.

      ——RM

  5. My last Samsung purchase was over 5 years ago.

    I don’t use Apple Pay that much because I don’t shop that much and most of the places I do use do not offer the service. When that changes I will use it.

  6. Apple pull out your finger and launch Apple Pay properly in Australia. The only places that really accept Amex in contactless payments are two supermarket chains whereas Visa and MasterCard terminals are ubiquitous.

    Second, NFC has some fantastic uses that aren’t just for payment, so unlock the chip and let the developers design some insanely great apps that can make iPhone even more useful.

    Am I going to upgrade from my 6 without ever using one of its tent pole features?

    1. I strongly suggest you look into NFC security. When done wrong, as it has been for many years and still is in many parts of the world, it’s a dirt easy way for crooks to steal your identity. Granny walks by, activates your NFC and goes off on a shopping spree. I for one would never allow any old app to work via the NFC for fear they’d also do it wrong.

      The way Apple Pay is done is the BEST method in the business today.

      Meanwhile, I wish I knew more about the status of payment systems in Australia. It may be that the nation is still using the bad-old technology and Apple wants no part of it. Just guessing.

      1. Actually Australia has one of the most advanced payment system infrastructures in the world. Chips have been in regular use for well over 15 years, signatures are completely phased out in favour of PINs, and contactless terminals are used nearly everywhere electronic payments are accepted.

        Cash use among Australians is already low, and a significant portion of the population go weeks without touching cash (myself included). See http://m.theage.com.au/federal-politics/political-news/cashless-future-will-save-billions-and-requires-red-tape-abolition-alex-hawke-20160216-gmv8ka.html

        The purported reason for the delay in Apple Pay is a deadlock they currently have with the big four banks that control nearly all of the retail market over fees: banks here earn a lower percentage in fees than in the US, so they are arguing for a commensurately lower fee to Apple. After negotiating so successfully with music labels and film studios, it seems quite bizarre that Apple has been incapable all this time of negotiating a fee with four banks.

      2. I’m in Oz waiting for Apple to make a deal with the big 4 banks so I can start putting my 6S Plus to good use.
        Why can’t Apple discount their transaction fee like they have just done in China?
        I love Apple gear (since 1984) but Apple can be very slow responding to some issues.
        Especially Apple Australia who seem to have their own agenda.
        Wish we still had Steve to stoke things up!

        1. I know what you mean. A lot of these negotiations are held by the relational group of personalities. They RARELY are good at getting things done. Bring on the producer personalities. Here is my latest theme song for the producers. I like the marching beat and great bass line:

  7. One of my Android loving friends – a friend that loves to tell me how great Android is and how he can do everything with his Droid that I can do with my iPhone – told me this weekend that the next time he and his wife can upgrade their phones, their going with iPhones. My reaction – “Welcome to the real world, it’s about f’ing time!”

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