CHICAGO (12/30/15)--Samsung Pay is set to compete with online payment giant PayPal with the announcement that it will allow users to make Web-based purchases with its mobile wallet next year.
"For Samsung, moving online could be a smart move," said James Wester, research director at IDC Financial Insights (Reuters Dec. 28). "It will help them build customer habit and they can benefit from that when U.S. consumers transact in stores."
Samsung Pay uses magnetic secure transmission, which mimics magnetic-stripe credit and debit cards and is available at most point-of-sale terminals. It also supports near-field communication terminals and does not require special arrangements with retailers.
The electronics company also announced that lower-priced Samsung phones will start supporting the mobile wallet within the next year.