Samsung Waiving Mobile Payment Fees for Merchants

March 10, 2024 by

Image credit: SamsungTomorrow

Samsung will not charge merchants fees for Samsung Pay in South Korea. The move is designed to encourage adoption and provide a cheaper alternative to Apple Pay.

The Korean cellphone maker made the announcement at this year’s Mobile World Congress, saying that the service will be up and running by the end of 2015 and will offer a free way for merchants to offer faster and more convenient payments for consumers.

Apple Pay charges 15 cents per $100 processed through Apple Pay, which has caused some complaints from smaller retailers who already feel their margins are squeezed by high credit card transaction fees on transactions based on plastic cards.

It remains unclear whether Samsung will charge American merchants for Samsung Pay, but even if it does, widespread adoption seems likely. Unlike Apple Pay, which depends on a compatible NFC reader, Samsung Pay is compatible with magnetic stripe card readers, so it should be much easier for merchants to accept the platform without making any hardware upgrades on their end.

Samsung is hoping its mobile payment platform will appeal to consumers and bring more users back to its phones.

By the end of 2014, Apple surpassed Samsung in smartphone sales, a surprising move after Samsung’s aggressive advertising efforts in 2013.

Unfortunately, those efforts seem to have failed, causing the Korean phone maker to re-pivot its strategy on offering more functions at lower costs.

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