-- Samsung Pay to arrive Sept. 28, 2015.
The highly anticipated launch of Samsung Pay materialized first in Korea on Aug. 20, 2015, and followed with an open beta trial for U.S. financial institutions starting Aug. 25 in advance of the nationwide roll out slated for Sept. 28. The newest entrant in the mobile-driven payments space has a unique advantage in that it facilitates both near field communication (NFC) and magnetic (mag) stripe payments.
As acquirers and merchants race to replace mag stripe POS terminals with newer Europay/MasterCard/Visa-chip enabled terminals by the Oct. 1 fraud liability shift deadline, Samsung Pay's dual approach is expected to ease the transition for countless merchants, who could take years to achieve full compliance with card brand mandates. Magnetic Secure Technology (MST) developed by LoopPay Inc. will be preloaded into the new Samsung Galaxy S6 smartphone and Note5 tablet models. MST securely pulses mag stripe data to existing mag stripe and dual-equipped POS terminals.
A tokenized version of the mag stripe transaction that includes a one-time use cryptogram inside the discretionary field (track data), and as far as the merchant is concerned, they're just sending the track data back to their processor.
Using Samsung Pay, duplicate transactions, NFC and mag stripe, cannot occur simultaneously. Graylin said that depending on where the user positions the phone, a POS system equipped with NFC, for example, would search for an NFC signal to complete the transaction; likewise for MST. Whichever signal from the mobile device is detected by the POS system first is designated in the transaction.
Samsung Pay delivers a better value proposition than Apple Pay. Unlike Apple Pay, which extracted a pound of flesh from the issuers, requiring them to sign a contract to give Apple 15 basis points on every credit card transaction and half a cent on every debit transaction, Samsung Pay will not be extracting those same royalties and rents.
Opening with strong alliances
Ahead of the launch, Samsung had already setup strategic partner alliances for Samsung Pay with the major U.S. card brands, banks and payments industry partners, including First Data Corp., Synchrony Financial and Total System Services Inc.
The big winner is Visa, MasterCard, American Express and Discover, because the account credentials will still be provisioned through their tokenization services. It's the first real major new product from Visa and MasterCard in 20 years and should be very well received by shareholders once it starts to run in earnest.
If you are interested in Samsung Pay or Apple Pay terminal with NFC technology, call us at 1-888-895-3129 or visit http://www.credit-card-processing.com
Contact Info:
Name: Jim Johnston
Email: Send Email
Organization: Merchant Resources
Phone: 1-888-895-3129
Website: http://www.credit-card-processing.com
Release ID: 90643
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