Samsung Pay Beats Apple Pay to India
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Samsung Pay has launched in India ahead of its competitor, Apple Pay.
Samsung partnered with a number of banks, including Axis, HDFC, ICIC, SBI and Standard Chartered to expand to the country. Users can also add Paytm wallets, which is the largest mobile payment provider in India, and the company has made deals with both MasterCard and Visa. Citibank credit cards and debit cards will also soon be compatible with Samsung Pay.
Setting it apart from other mobile payment options, Samsung also supports Magnetic Secure Transmission (MST). This allows phones to send a magnetic signal to payment terminals, which means this payment option will work at most existing point-of-sale systems, unlike Apple Pay, which requires NFC to work.
“The timing of the launch is very good given the ‘shock’ to the cash economy following demonetization. It is much easier to get people to download and use the Samsung Pay feature,” Santosh Rao, head of research at Manhattan Venture Research told The Street. “India’s digital payments market is expected to reach $500 billion by 2020 on the back of 1.2 billion mobile subscribers, which makes it a compelling opportunity to tap into.”
Samsung, which is the world’s largest smartphone maker, has launched Samsung Pay in 13 countries. Apple Pay is available in 14 countries.
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John Oldshue is the creator of LowCards.com. He worked for over 15 years in television and won an Emmy award for his reporting. He covers credit card rate issues for LowCards.com.