Samsung planning to charge an amount utilizing Samsung Pay service, according to the latest report. This would be to take on Apple Pay, which is set to enter the South Korean market soon. Apparently, Apple and Samsung will impose payment fees on them, along with other payment providers.
Naver Pay and Kakao Pay will eventually follow this as a new business model. Financial authorities have said that Apple Pay fees of 0.1% and 0.15% can be imposed not only on consumers and stores but they can also be imposed on credit card companies.
While Samsung is yet to comment on Apple Pay’s arrival in South Korea, going by the metrics, Samsung Pay might lose a good number of its user base in the country. That’s so apparent that in South Korea Samsung Pay is the largest digital card payment service. Today it has a 16 million user base since was arrive on the market in August 2015. With a cumulative payment is approximately KRW 182 trillion (approx $139.8 billion).
The NFC technology used by Apple Pay is based on the EMV Contactless standard by Europay, MasterCard, and Visa. All the South Korean credit card companies that will be providing Apple Pay services must pay both the EMV fee of 1% and the Apple Pay fee. Samsung Pay supports both magnetic support transmission and NFC, and it has been available for free since its inception. It only charges the service initiation fee.
In the opinion of the industry source, “Samsung Electronics has run the free service in order to increase and retain Galaxy smartphone users, but Apple Pay is changing the market, and Samsung Electronics may consider charging.” Apple is about to be combining with South Korean credit card company Hyundai to bring Apple Pay to its customers in the country. However, there is no other words talking on when Apple Pay support will begin, but it is touted as ‘very soon.’