Credit card companies won’t be able to use Samsung Pay for free any longer
Just a few months ago Apple introduced Apple Pay in Samsung’s hometown. In response to Apple’s presence in the South Korean market, Samsung Pay is introducing some changes to its payment service. Samsung Pay has been available to users in South Korea for free. It was freely accessible to credit card companies as well as consumers. As of now, the tech company has announced that it is going to end its free services. Samsung will begin charging credit card companies in a similar manner as Apple.
The reports indicate that the credit card companies have been notified about this change. Back in 2015, the tech giant introduced Samsung Pay. It was free for all users and credit card companies. However, in the future, the company aims to charge a nominal fee to credit card companies in South Korea. Later on, this strategy will be introduced to other markets where Samsung Pay is offered.
Well, this decision is not quite beneficial for the credit card companies. these companies state that they have marketed the Samsung Pay services to around 16 million users over the past eight years. in response to cut costs, these companies might reduce the benefits offered to the end user. Although the government has stated that the agreements between the firms are independent, it may step in if the costs are transferred to the customers.
Besides this, some credit card companies are losing their market share because of some tech giants like Apple and Samsung. Some fintech firms like Naver have also a role in this. Some time ago, Samsung Pay and Naver Pay collaborated. The company intends to introduce Samsung Pay on Galaxy smartwatches in response to the existence of Apple Pay in the region.
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