SamsungPay reports loss but retains title of ‘most widely accepted mobile payment system’

SamsungPayThe latest figures from Samsung Electronics show a recorded loss of $16.8 million on recorded sales of $4.12 million with its debt and net worth being $23.6m and $10.5m respectively for SamsungPay (previously LoopPay). However the company say they view the payment platform as an investment for the future that will enhance the competitive edge for its range of Galaxy smartphones.

SamsungPay is supported by Galaxy S6, S6 Edge, Note 5 and several Galaxy A phones along with last months newly-launched Galaxy S7 and S7 Edge.

SamsungPay now supports payment cards from 70 financial institutions in the United States, which represents 70% of the debit and credit card market, however lags behind Apple Pay with their 1,000 plus financial institutions. This should not worry SamsungPay too much though, as thanks to its magnetic stripe emulation (MST) technology (taken over from LoopPay) and knowing how vital MagStipe is for the US, it still retains the title of ‘most widely accepted mobile payment system’.

Since SamsungPay service was started in August of last year, there have been a total of $500 million in accumulated payments and 5 million accumulated members up to this February. Indications are that SamsungPay had contributed in selling at least 5 million Galaxy S6 and S6 Edge, Galaxy Note 5, and Galaxy A5 and A7 in South Korea and the U.S.

Samsung Electronics has announced that it has no plans for imposing any commission on using SamsungPay. Rather the company expects to secure and analyze data on consumers’ behavior through the platform.

A spokesperson for Samsung commented that, “Samsung’s pragmatism does not stop on just simply selling one-time hardware, but it is going to actively push for M&A and make investments if it sees businesses that can continuously create profits. SamsungPay and VR (Virtual Reality) both correspond to this pragmatism.”

 

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Categories: Samsung Pay

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