Samsung Electronics Co. said Monday it has clinched a strategic partnership with US online payment service provider PayPal for an expansion of its mobile payment services. Because of this, in addition to enabling consumers to pay with PayPal inside of their Samsung Pay wallets, we're also able to allow merchants to accept Samsung Pay.
Additionally, Braintree, a PayPal subsidiary that helps power online- and mobile-payments for ecommerce companies, will also support Samsung Pay thereby extending Samsung's payments reach to more merchants if they add just a few lines of code to their websites and apps.
Samsung said it would begin the Samsung Pay service using PayPal first in the U.S. before gradually expanding it to other global markets. 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. More than 200 million people use PayPal. Previous year alone, PayPal processed $102 billion in mobile payment volume and two billion mobile payment transactions.
According to March data from PYMNTS.com, Samsung Pay has the highest usage rate of the digital wallets with 4.5% of mobile users. Currently, Samsung Pay is available for users of devices like Samsung S8, Samsung S7 Edge, S7, J7 Max and J7 Pro among others. 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.