After tasting success in US and Korea, Samsung is all set to launch its mobile payment app Samsung Pay, which can be used with POS terminals for payment or cash withdrawal from automated teller machines, in China.
Samsung Pay’s Chinese incursion is followed by Apple’s resent launch of its own payment service there, a company representative said.
Samsung Pay will be launched in partnership with China UnionPay, a bank card clearing service provider that will manage all bank card transactions on the Chinese mainland.
Samsung Pay has attracted 5 million registered users in six months, with transaction volume via the app exceeding $500 million, following its launch in the Republic of Korea and then the United States in the latter half of 2015.
To complete transactions, Samsung Pay users can place their mobile phones near the card slots or the NFC reading areas of compatible point-of-sale (POS) terminals.
A media report quoting company officials, said that Samsung Pay can be used with POS terminals without the NFC function, in contrast with Apple Pay which needs UnionPay's NFC compatible POS machines. With the Samsung service, users can also withdraw money from automatic teller machines (ATM).
The company said that the service was aimed at attracting more new users in the mobile market.
Mobile payment is an emerging market in China as 620 million people or 90.1 percent of the nation's Internet users last year used a smart device to go online, the China Internet Network Information Center said.
According to research firm Analysys, the third-party mobile payment market in China was valued at 16.36 trillion yuan in 2015. Analysys data showed that Alibaba and Tencent are the major players in the market, as Alibaba's Alipay held 71.51 percent of the market in the third quarter last year, while Tencent's Tenpay had taken a 16-percent share.