Samsung is expanding its partnership with MasterCard to get Samsung Pay to Europe and provides a smartphone-based contactless payment alternative to Apple Pay, which recently launched in the United Kingdom.
Samsung Pay, the tokenized mobile payment system unveiled with the Samsung Galaxy S6, will first make an effort to use NFC after which fall back to magnetic stripe emulation technology to provide widest compatibility with merchant terminals, MasterCard’s Matt Barr has told NFC World.
The partnership indicates that banks supplying MasterCard should be able to hook up with the MDES platform and enable Samsung Pay to be used by its customers as soon as it launches.The service is scheduled to launch in the US later this summer, and is currently being trialled in South Korea. It works a little differently to its rival. Apple Pay requires specialized near-field communication (NFC) pads to work, while Samsung’s system will work with any terminal with a regular magnetic stripe credit card reader and NFC.
This is because the program is made on technology obtained from payments company LoopPay, which Samsung bought at the end of February. LoopPay uses a tiny metal coil to generate a magnetic current to the credit card reader, as opposed to NFC, which demands for you tap a device against a specific suitable sensor.
The process replaces information of a credit card with a device-specific token and a single-use dynamic code which can be decrypted as long as it reaches the customer’s bank throughout the payment authorization process. This means that the retailer doesn’t have access to the card details throughout the processing of a contactless payment created using a mobile device.
Javier Perez, president of MasterCard Europe, explained that the partnership will expand the reach of Samsung Pay and MDES to cardholders in Europe.