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Samsung Pay Crosses 1.3 Billion Transactions, But Falls Short of Apple Pay

Tatjana KulkarnibyTatjana Kulkarni
August 22, 2018
in Banking, Payments
Reading Time: 2 mins read
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As it makes its way to South Africa and continues to amass impressive partnerships with the likes of Alipay and PayPal, Samsung Pay might have completed three years in the mobile payments market, but its numbers still lag its main rival, Apple Pay.

Samsung revealed yesterday that it had completed 1.3 billion transactions in three years across 24 markets. That is not a number to boast about when considering Samsung Pay’s peers.

To put things in context, competitor Apple Pay revealed that it surpassed 1 billion transactions over a single quarter in the U.S. market alone. In the last quarter, ended June 30, PayPal revealed it had 2.3 billion transactions and processed $139 billion, out of which 39% came from its P2P app Venmo. Zelle, which launched a little over a year ago, crossed 100 million transactions totaling $28 billion as of June 30.

Launched in August 2015, Samsung Pay is currently available in 24 markets across the globe. It uses both Near Field Communication (NFC) technology and the magnetic technology used card swipes (developed by LoopPay, acquired by Samsung in 2015) to enable point of sale payments.

As of yesterday, Samsung Pay is live in South Africa, a market where Apple Pay is still not present.

On this venture, Samsung Pay partnered with Absa Bank and Standard Bank, which means that customers from the two banks can use Samsung Pay. It is unclear if customers from other banks can use Samsung Pay in South Africa.

In a statement released yesterday, Craige Fleischer, Vice President of Integrated Mobility for Samsung South Africa, said:

Samsung Pay works almost anywhere you can swipe, insert or tap a card, so as the first country in Africa to implement this, we are hugely excited about how it’s going to transform our customers’ lives. Samsung Pay is committed to driving the mobile wallet movement in Africa, and this launch furthers Samsung’s dedication to delivering innovative services to consumers everywhere.

Samsung Pay approaches different markets through a combination of partnerships and localized products and offerings (for example, it is partnered with train-ticket company Octopus in Hong Kong). Samsung Pay claims to currently have over 2,000 bank partnerships under its belt. It also has partnerships with companies like Alipay and WeChat in China; PayPal and Chase Pay in the U.S., payments company BHIM UPI in India, among others.

Samsung did not disclose the transaction value of the 1.3 billion volume. Bank Innovation is awaiting a response from Samsung Pay.

Tags: AlipayApple PayCapital & FundingExclusiveGoogle PayJPMorgan ChasePremiumSamsung PayStandard BankVenmoWeChatZelle
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