PayPal to become a payment option in Samsung Pay, including in-app, online and in-store

Samsung users will be able to choose PayPal as their preferred
method of payment in-app, online and in retail stores through
the Samsung Pay mobile payments platform, the companies
announced today. The strategic partnership
will initially be available to Samsung Pay users in the United
States before expanding to other countries, says Samsung.

In addition to supporting PayPal at point-of-sale via Samsung
Pay, the deal will also see Samsung Pay being added as a
method of payment in-app and online for PayPal’s Braintree merchant base.

The move to connect PayPal’s wallet with Samsung Pay will open
up PayPal to millions of stores, Samsung and PayPal both noted. Its mobile payments
technology, a rival to Apple Pay and Google’s Android Pay,
works both with NFC point-of-sale system and those using
traditional mag strip technology. Because Samsung Pay
supports Magnetic Secure Transmission (MST) technology, it
can replicate a card swipe – allowing Samsung Pay to work
nearly anywhere that payment cards are accepted.

That said, Samsung Pay is not yet one of the most-used payment
technologies in the U.S., according to recent data.

According to a Boston Retail Partners survey on mobile payments released earlier
this year, Apple Pay now has the largest percentage of
supporting U.S. merchants, with 36 percent accepting the
technology, up from 16 percent the year before.

PayPal was a close second with 34 percent acceptance, followed
by MasterCard PayPass (25%), Android Pay (24%), Visa Checkout
(20%), Samsung Pay (18%), Chase Pay (11%) and private label
mobile wallets with 4%.

To increase its adoption in-store, PayPal last year partnered
with major stakeholders like Visa and MasterCard for store payments. And in
April 2017, PayPal said it would work with Android Pay
as well, to support both mobile payments in apps and those in
brick-and-mortar retailers.

In addition, PayPal just last week announced an expanded
relationship with Apple
, which allowed the payments
platform to be included as a payment option for App Store
purchases that’s now accessible via Apple’s mobile devices,
both in the U.S. and in 11 new markets. The news quickly sent PayPal’s stock soaring.

The Samsung Pay tie-up is another example of PayPal’s plan to
increase adoption via partnerships and deals, rather than
trying to out-compete its mobile payment rivals with an “us vs
them” strategy.

For PayPal, getting a foothold in mobile is critical to the
future of its business. As the company said today, it processed $102 billion in mobile payment
and two billion mobile payment transactions last

“At Samsung, we pride ourselves on our open model of
partnership and collaboration, which helps us deliver the best
experiences to our customers,” said Injong Rhee, CTO and Head
of R&D, Software and Services of the Mobile Communications
Business, Samsung Electronics, in a statement. “We are excited to be partnering
with PayPal, one of the largest payment platforms in the world,
to offer our global consumers a richer mobile wallet
experience,” Rhee added.

PayPal and Samsung already had a working partnership in place
ahead of this new deal. For instance, PayPal and Samsung worked
together on mobile payments back in 2014, and was added as a payment
method in Samsung smart TVs the following year.

The PayPal integration will soon be live in the U.S. on Samsung
smartphones, including devices like the Samsung Galaxy S8 and
S8+. Samsung did not announce a timeframe as to when PayPal
support in Samsung Pay would expand outside the U.S., only
saying that it would also arrive “soon.”

Featured Image: PayPal

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