- Samsung officially launches a cross-border money transfer service as well as a virtual payment card.
- Goal: Enhance their mobile payment solution, Samsung Pay.
- Their new Mastercard-compatible Samsung Pay Cash virtual debit card can be added to Samsung Pay for in-store and online purchases.
- How it works?
- Cardholders add money to their card via credit transfer or using another payment card.
- This card can only be used via Samsung Pay.
- When making purchases with their virtual card, they collect Samsung Rewards points later to be swapped for Samsung products.
- Business model: Debit transfers from a card to Samsung Pay Cash will incur a $0.25 flat fee, and a 3% fee will be charged when using a credit card.
- A P2P money transfer feature has also been unveiled in partnership with the British exchange platform Travelex. This feature lets Samsung Pay users send money to accounts in 47 eligible countries. If the recipients don’t hold a Samsung Pay account, they can withdraw the amount at collection points or from partner banks.
- These new options are only available in the US for now but Samsung intends to address other countries in the coming days.
- Aiming for new targets. The payment cards stored to Samsung Pay already enable the users to carry out online and in-store transactions. But Samsung Pay Cash avoids that the users should overspend. Some customers are interested in applying spending limits, i.e.: far from the typical credit card model. Samsung aims for new customer segments.
- Boosting Samsung Pay use levels. In light of the ongoing competition from Apple Pay and Google Pay, Samsung tries to make their mobile payment service more attractive. These options will help them boost their wallet’s use rates.
- Samsung introduced Samsung Pay four years ago. In France, this service has been available since spring 2018. And they claim 14 million customers in South Korea.
- Apple launched a credit card in March 2019 and aimed for the same goal: expanding their wallet offer and highlighting a new value proposition.