Contactless payments are the future. As smartphones continue to replace our wallets, mobile payment services like Samsung Pay and Apple Pay aim to be at the forefront of this revolution. This comprehensive guide will analyze how these platforms work, compare features, and reveal user sentiments – all to help you better understand the key differences.
Overview
This in-depth comparison focuses on Samsung Pay and Apple Pay specifically – two of the most widely used contactless payment platforms globally. We will explore:
- Origins and development history
- Capabilities, features and device support
- Payment technology and security mechanisms
- Retail acceptance rates and coverage
- Up-to-date market share and usage estimates
- Roadmaps for future enhancements
- User reactions and preferences
By the end, you should have all the details needed to determine which mobile payment service – if any – is best suited for your needs and preferences. Time to go contactless!
The Beginnings: LoopPay Sparks Samsung Pay While Apple Takes 5+ Years Building in Secret
Though mobile wallets seem ubiquitous today, their pasts differ greatly:
Samsung Pay Born from Bold Acquisition
Samsung Pay actually began life under a different name – LoopPay, a promising contactless payments startup founded in 2012. LoopPay‘s big innovation was Magnetic Secure Transmission (MST), enabling smartphones to transmit payment data to older magnetic stripe terminals using a wireless signal.
Recognizing MST‘s potential for driving consumer adoption, Samsung acquired LoopPay for $250 million in early 2015. They integrated it into their Galaxy smartphones over the next few months before unveiling the rebranded Samsung Pay service in August 2015.
Out of the gate, Samsung Pay was accepted anywhere that took standard credit cards – giving it an early boost over NFC-only solutions.
Apple Pay‘s 5+ Years in the Making
Apple began working on their own contactless service behind the scenes around 2013 based on multiple reports. But even years prior, Steve Jobs himself envisioned a "virtual wallet app" for easier shopping according to patent filings.
Apple brought together credit card networks, issuing banks, and iPhone hardware support to create a frictionless payment experience years before ever announcing it publicly. Partners were barred from acknowledging involvement in the secret project.
After extensive closed development and testing, Apple CEO Tim Cook finally took the wraps off Apple Pay in September 2014 alongside the new iPhone 6. Given NFC‘s limited reach, it would be confined mostly to higher-end retailers for the next few years however.
How These Mobile Payment Platforms Function
Samsung Pay and Apple Pay take distinctly different technology approaches:
| Samsung Pay | Apple Pay | |
|---|---|---|
| Core Technology | NFC + MST | NFC only |
| Payment Transmission | Tokens sent over NFC or emulated magstripes via MST | Tokens sent strictly over NFC |
| Authentication | Fingerprint, PIN | Face ID, Touch ID |
| Compatible Readers | 30M+ payment terminals in 70+ countries | NFC readers at 85%+ of US retailers |
Both services rely on tokenization, allowing customers to upload their payment cards securely without exposing data. Dynamic tokens tied to these virtual accounts facilitate transactions behind the scenes.
Each company also built custom chips into their devices to enable seamless contactless data exchange upon encountering supported payment terminals. But Samsung went a step further by engineering phones to transmit tokens over legacy magstripe readers too – vastly increasing potential acceptance.
Just How Widely Supported Are These Platforms Anyway?
Samsung Pay theoretically works anywhere major credit cards are taken thanks to MST support – but are all terminals truly compatible? And how many retailers actually allow Apple Pay checkout?
Below we‘ll analyze acceptance rates from a few angles:
By the Numbers
Samsung Pay:
- 90%+ coverage claimed across payment terminals in the US
- Supported on 30M+ terminals across 70 countries
Apple Pay:
- Over 85% of retailers support contactless payments in countries like the US
- Supported on 70% of global NFC payment terminals
However, overall contactless usage remains low – under 2% of US in-store purchase volume uses platforms like Samsung Pay or Apple Pay according to recent Federal Reserve checks data.
Based on Deals in Place
Samsung Pay relies more so on legacy Visa/Mastercard acceptance by tapping into the infrastructure retailers already have for contactless credit card processing.
In contrast, Apple Pay depends greatly on Apple negotiating direct deals with merchants, card issuers and individual banks. This leads to a more seamless experience for iPhone owners given tight platform integration – when retailers fully commit to activation that is.
MST Closes Compatibility Gaps
The major advantage Samsung Pay retains lies in its proprietary MST technology. When NFC readers aren‘t available, MST emulates magnetic stripe swipes to transmit payment data to older terminals.
Think of it as a digital bridge helping Samsung Pay reach parity with plastic card acceptance until NFC proliferates further. For device-agnostic payments, MST provides unique flexibility.
Race to the Top: Apple Pay Leads the Way in Usage Thus Far
It‘s still early innings, but Apple has quickly emerged as the market share leader:
Apple Pay
45% share of mobile contactless transactions in North America
- Estimated 43 million global users
Samsung Pay
- Around 16 million global users
- Limited exclusively to Samsung devices
Driving Apple‘s strong lead is their head start launching in 2014 before any major competition. They also benefited tremendously from ubiquitous iPhone adoption and tight Apple Watch integration later on.
However, Samsung Pay has grown transaction volume over 400% in recent years across South Korea and the US. There‘s still plenty of market left to capture as contactless payments gain further penetration industry-wide.
Apple Pay vs. Samsung Pay: Which is Best For You?
Based on this extensive side-by-side analysis, we can drill down to some platform recommendations:
Apple Pay is the right fit if you:
- Already own iPhone, Apple Watch or other Apple devices
- Highly value seamless syncing across your product ecosystem
- Prefer ultra user-friendly platform experiences
Samsung Pay better meets your needs if:
- You exclusively use Samsung Galaxy smartphones
- Device-flexibility is important for your multi-OS household
- Leveraging MST for payments at all terminals is tablestakes
In summary:
- Apple Pay wins on convenience given tight platform integration
- Samsung Pay brings greater versatility through universal acceptance
So iOS loyalists can likely stick to Apple Pay for the best user experience. But for those less locked into a given ecosystem, Samsung Pay brings unique advantages.
Over to you now! Hopefully breaking down this platform comparison provides clarity to inform your next move towards contactless payments. Don‘t hesitate to reach out with any other questions.
