Samsung won’t charge a transaction fee to credit card companies
According to some recent pieces of information, the South Korean tech company Samsung won’t charge credit card companies any commission on Samsung Pay transactions. For the past few weeks, it has been a hot debate that Samsung might charge commissions to credit card companies just like Apple Pay. As of now, the company has officially declared that it is not going to take any such step.
In contrast to Apple Pay, Samsung Pay is still free for card providers in South Korea
The Korea Herald said that Samsung will not impose any fees on credit card companies that support Samsung Pay. The South Korean company intends to compete with Apple Pay with this strategy. The Cupertino-based tech firm Apple recently launched Apple Pay in South Korea. The company charges a fee of 0.15% to credit card companies per transaction. Similar to Apple’s strategy it was expected that Samsung might follow a similar pattern. It was assumed that the company might organize a meeting with partner banks and credit card companies to modify the terms and conditions of their agreement.
A spokesperson for Samsung said in a statement, “We have chosen to keep Samsung Pay commission-free. In addition to offering customers the best Samsung Pay service, Samsung Electronics is committed to advancing the growth of the domestic payment ecosystem by maintaining continuing collaborations with regional card issuers.
Following Apple Pay’s debut in South Korea, domestic credit card companies were afraid that Samsung Pay could turn into a paid service. They assumed that would be required to pay KRW 70 billion (around $55 million) and KRW 100 billion (around $79 million) in terms of yearly commission. Furthermore, it was anticipated that the chargers could be transferred to consumers. A similar outcome following Samsung’s decision in South Korea can be anticipated in other nations where Samsung Pay is offered.
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