Samsung Pay will give rival contactless payment systems Apple Pay and Android Pay “a run for their money”, according to credit agency Moody’s.
Moody’s pointed out that Samsung Pay will work on nearly all existing credit card readers and will not require point-of-sale terminals to have near-field communication capability, unlike its rivals.
Apple Pay, which launched to much fanfare in the UK in July, only works in locations where NFC terminals are turned on, as will Google’s Android Pay, set to be unveiled later this year.
Samsung Pay allows shoppers to pay using their mobile phones even if the terminal is not NFC-enabled by using magnetic strip recognition.
Last week, Samsung revealed that the UK will be the first country in Europe to get Samsung Pay. The launch date is to be confirmed, but it will be in the “near future”.
Samsung Pay will launch in Korea tomorrow (August 20), followed by the US on September 28.
As with Apple Pay, transaction limits are determined by local card associations. In the UK the transaction limit is currently £20, but this will be increased to £30 from September 1, 2015.
Hash Ladha, chief operating officer of Oasis, said he was keeping a close eye on all emerging contactless payment systems, even though the chain’s average transaction value is higher than £20 or £30.
“If the banking sector is willing to put the limit up it will bring more and more retailers into play. We’re working continuously with our payment providers to keep in tune with it. I do think there’s demand.”
A spokesman for The UK Cards Association said there were no immediate plans to raise the limit, but added: “It’s always kept under review. It’s a balance between customer demand, the average spend in different settings and security. For us it’s about making it available to as many customers as possible.”
He said the amount spent using contactless payment systems and the number of transactions trebled in 2014.
Last week PayPal launched its new NFC-enabled PayPal Here card reader, which is designed to help retailers better manage contactless payments from Visa, Maestro and MasterCard debit and credit cards, as well as Samsung Pay and Apple Pay.