Samsung pay is a mobile payment service that can almost replace your wallet and will pay your bill in places like restaurants and grocery stores. The transacting will only be completed if it is authorized by your fingerprint. This will even work with a normal credit card terminal unlike apple pay enabled iPhone that requires an NFC terminal to make any kind of payment.
iPhone sells in millions each quarter. While Samsung also sell its phones in large numbers, most of them are either mid ranged or low end devices. Samsung now wants to enable even these phone with Samsung pay to make this mobile payment service, the most dominant force in the smartphone world. Samsung also stated that it will enable other third party android OEM to use the Samsung pay.
But the major obstacle seems to be the inclusion of NFC chip and the finger print reader that can authorize the transaction. Chinese manufacturers are already offering low end phones with fingerprint readers and Samsung has realized that it will lose out to these manufacturers if it doesn’t offer similar specs in the low end and mid ranged category.
Over the time, the NFC chips and fingerprint readers have become less expensive. Even though including these components and features in the lower end phone will cannibalize the sales of premium phones, Samsung is going ahead with its plan to introduce the Samsung pay in as many phones as possible to win the mobile payment war.
I wouldn’t be surprised if Samsung releases a high end tizen phone that has Samsung pay capabilities.