Samsung Electronics has integrated the PayPal Holdings Inc (NASDAQ:PYPL) for in-app, online, and in-store payments with its Samsung Pay. The companies announced today that Samsung users will soon select PayPal as their alternative option for payments of Samsung products via its mobile payment platform, Samsung Pay. The strategic agreement will first be accessible to Samsung Pay users within US before spreading to other regions.
The partnership will boost the business of both companies. Samsung’s mobile payment technology is a competitor to Apple Pay, Google’s Android Pay, and others that offer point-of-sale services. However, because Samsung Pay employs Magnetic Secure Transmission technology, it’s easier to replicate a card swipe with it thus making Samsung Pay more acceptable almost anywhere there are payment cards.
In the current arrangement, Samsung users will be required to basically add their PayPal email accounts to the Samsung Pay and they are ready to start business transactions everywhere that the Samsung Pay is acceptable. Generally, users will get several benefits including the gift cards, membership and loyalty programs.
The move is going to open up other numerous stores for PayPal services. The partnership will definitely give the consumers the opportunity to transact with mobile in almost every part of the world where customers can swipe or tap the credit cards. In addition, vendors will also accept Samsung Pay as a suitable method of payment in all in-app and online through the PayPal service. Currently, Samsung Pay covers almost everywhere in US.
Previous survey conducted this year by Boston Retail Partners on the mobile payments, Apple Pay holds the biggest percentage of facilitating U.S. vendors, with about 36% accepting the advanced technology, up from 16% growth recorded last year. PayPal came second with 34% acceptance in US. Others include MasterCard PayPass with 25%, Android Pay 24%, Visa Checkout 20%, Samsung Pay 18%, and Chase Pay 11% retailers’ acceptance.
Last year, PayPal partnered with other giant companies including Visa and MasterCard for store transactions. To increase its adoption rate in-store, PayPal has also promised to partner with Android Pay so as to support the mobile payments in-apps and other retailers.