Samsung Pay may be the next mobile payment system that will allow the next generation of peer-to-peer payments through virtual currency to mobile users.
Mobile payments are intensely changing the traditional ways of consumer behaviour, and shoppers are now experiencing a revolution through the trend. Whereas purchases were limited to physical money and bank cards only a few years ago, people can now use virtual currency through mobile phones.
According to Pymnts, Samsung Pay is taking that revolution a step higher by allowing money to be exchanged between smartphones through the use of an NFC chip. Samsung Pay currently allows NFC and Magnetic Secure Transmission (MST) technology and in-app purchases to make payment transfers.
Payment Week says that Samsung has applied for a patent that will transform Samsung devices into a payment terminal, much like any credit or debit card terminal at store cash registers. This will allow Samsung handset users to transfer payments into another Samsung handset.
Whether it's splitting a restaurant bill or paying a babysitter a quick buck for watching the kids, Samsung Pay's rumoured technology will make payment transfer without physical currency even more advanced.
Business Korea quoted an official from a fintech company: "If Samsung Electronics expands the application of the NFC payment module, smartphones with Samsung Pay can be used as mobile payment devices. Accordingly, it is possible to not only transfer money between smartphones but also pay with credit cards."
When smartphones replace credit card payment devices in this way, it will greatly affect the VAN industry, which receives commissions in the payment authorization process after installing its private lines in offline stores, and lending card payment terminals. Mobile payments will not require card payment terminals nor private lines, which places it at a clear advantage.
Reports have shown that Samsung Pay has been growing in popularity, even beating Apple Pay in terms of the number of users.
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