Just one month after its U.S. launch, it appears Samsung Pay is gaining a foothold in the mobile payment market.
According to Samsung, U.S. consumers have shown a “strong” interest in “repeat usage” of the service, with the average subscriber completing an average of eight transactions over the past four weeks. As of Wednesday afternoon, the Samsung Pay app had between one million and five million installs from the Google Play store alone.
“After one month, the numbers say it all: Consumers who have used Samsung Pay are using it repeatedly because it works almost anywhere you can swipe or tap a card,” said Samsung Pay global co-general manager Thomas Ko. “We’re thrilled to introduce new partners that will build on our early success, and move us even closer to a world in which your mobile phone is a true mobile wallet.”
As Ko said, a main driver of Samsung Pay’s adoption rates appears to be its unique technology setup.
Unlike its competitors, such as Apple Pay and Google’s Android Pay, Samsung Pay employs LoopPay’s contactless magnetic stripe technology (MST) that allows it to be accepted nearly anywhere traditional credit cards are taken. The service also works with barcode and NFC technology, further reducing the friction formerly faced by users in the mobile payment space.
According to Samsung, three out of four Samsung Pay transactions were made using the service’s MST technology, validating Samsung’s belief that MST would be a critical component to the success of the payment system.
But Samsung Pay will soon be available to even more consumers and will facilitate even more diverse transactions.
According to Samsung, the company is expanding its Samsung Pay partnerships in the financial industry to support cards issued by Chase, PNC Bank, TD Bank, SunTrust, Fifth Third Bank, Key Bank, Silicon Valley Bank, Security Service Federal Credit Union, Navy Federal Credit Union, Virginia Credit Union, Associated Bank, Randolph Brooks Federal Credit Union and People’s United Bank in the next few months. Discover card holders will also be able to use the service starting next year.
The mobile payment service is also looking to strengthen its retail relationships to allow Samsung pay users to pay with gift cards as well. The ability to load and use gift cards on Samsung Pay should be available by the end of this year, Samsung said.
Samsung Pay currently works with Visa, Mastercard or American Express cards issued by Bank of America, American Express, Citi Bank, U.S. Bank or Synchrony Financial. The service is available on the Galaxy Note 5, S6, S6 edge and S6 edge plus through Verizon, AT&T, Sprint, T-Mobile and U.S. Cellular.