Will Samsung Pay replace your wallet?

With the test period commencing on 25 August, Samsung Pay has become a talk of the global market whether it can replace the wallet or not. Many analysts are drawing comparisons with Apple Pay and Google's Android Pay.

Samsung Pay is scheduled for launch in South Korea on 20 August, in the US on 28 September and will be in the UK, Spain and China soon. Consumers, retail outlets and global supermarket chains are keeping their fingers crossed on the outcome of Samsung Pay.

The advanced features of Samsung Pay are likely to make it more acceptable than other existing modes of pay. Unlike other pay options, Samsung allows consumers to pay at retail outlets with legacy point-of-sale equipment as it doesn't require any upgrade as in the case of Apple Pay. Samsung Pay comes with state-of-the-art technology features to beat the competition in the market and gain the major chunk in the global market share. 

Samsung Pay has its own limitations as well. It needs Samsung phone platform for using Samsung Pay. Samsung has been facing stiff competition from Apple. One has to see the results of the new Galaxy Edge and Note in how far these products help Samsung improve sales volume in the global smartphone market. 

The mode of payment at retail outlets is different from Samsung Pay to other rivals including Apple Pay and Google's Android Pay. Samsung Pay works on magnetic technology. Samsung Pay's magnetic signals are similar to those generally generated by card swipes.

Imitating the technology of card swipes and generated signals, Samsung Pay is likely to be accepted at majority outlets as the existing technology allows it. Whereas Apple Pay and Google's Android Pay work on wireless technology (near field communication - NFC). That's the reason, Apple Pay and Android Pay can be used with select merchants as it requires new payment equipment with wireless technology.

Another question arises here is whether Samsung Pay replaces plastic cards. Plastic credit or debit cards are easy to carry and consumers are much comfortable with them. Unless there's a problem in using them, consumers generally don't feel any hurry to switch over to other modes of payment such as Samsung Pay or Apple Pay and Google's Android Pay.

Analysts still feel that though Samsung Pay is accepted at majority of outlets globally, it may not gain wider acceptance owing to technical and behavioral constraints. Consumers also may not feel comfortable by handing over their smartphone to billing agent for payment purpose.

The major advantage of using Samsung Pay is security. Hackers can hold of the details of credit cards or debit cards that were used at outlets. Whereas involving Samsung Pay mode of payment, this problem doesn't occur. It's more handy, comfortable and safe to use while paying cabs during nights. When you pull your purse out of your pocket during night time, you tend to lose other valuable things or chances are keys may slip out. Using a smartphone for your payment during night times or times of emergency, it'll be much safer for consumers.