Technology / Samsung mobile payment to use innovative tech to rival Apple Pay 14 August 2015 | Author: Sara Tuxworth Samsung has announced a new mobile payment system that uses magnetic secure transmission (MST) to enable instant use across millions of retail stores worldwide. The system will be usable on devices already out in the market, allowing Samsung users to adopt the payment method with relative ease. The phones that will be compatible with the new payment system will be: Samsung is meeting the challenge of the new payment method offered by rivals Apple Pay. Samsung approximates the mobile banking service at over 30 million merchant locations worldwide. This is due to the deployment of Magnetic Secure Transmission (MST) technology. Jim McCarthy, executive vice president of innovation and strategic partnerships at Visa said: “Mobile commerce just got a lot more interesting. “Instantly on day one, because of MST technology, Samsung Pay will be accepted almost anywhere consumers can pay today,” he said. “We see this as a huge step forward for consumer choice and payment security.” MST is already used by most retailers, allowing widespread adoption in retailer outlets. Additionally, Samsung is promoting the security measures of its payment system through tokenisation. The data transmitted during the transaction is encrypted with a one-time token, once the token arrives at the destination of the payment, it is decrypted and processed. JK Shin, CEO and head of IT and mobile communications division at Samsung Electronics said: “The secure and simple payment process, coupled with our robust partner network, makes Samsung Pay a truly game-changing service that will bring value to consumers and our partners in the ecosystem.” The near field communication technology – used alongside Samsung Pay’s MST technology – but used solely by Apple Pay, is in the process of widespread adoption but still has some way to go. “Combining Visa’s expertise in payment technology with Samsung’s leadership in creating innovative mobile experiences, gives more choice to financial institutions who want to enable their customers to pay by phone,” said McCarthy. Photo © Kārlis Dambrāns. (CC BY 2.0). Cropped. –
Samsung is thought to believe that its mobile payment application, Samsung Pay, will be able to battle its rival Apple Pay due to its use of magnetic secure transmission (MST) technology, which is enabled on the Samsung Galaxy S6, Magnetic Secure Transmission, Magnetic Secure Transmission+ and Note 5. MST is said to add an additional layer of security to mobile transactions.