Samsung Electronics extends partnership for mobile payment

Vice chairman returns home after talks on US card firms over Samsung Pay

By Park Si-soo

Vice Chairman Lee Jae-yong

Samsung Electronics is seeking to expand its partnership with credit card companies at home and abroad to ensure the successful launch of its mobile payment service, Samsung Pay, a brand-new feature on the soon-to-be-released Galaxy S6 and Galaxy S6 Edge.

Vice Chairman Lee Jae-yong recently had a series of meetings with chief executives of American card companies, said Samsung officials.

“Lee retuned to Seoul early Wednesday after attending a gathering of U.S. business leaders, which was hosted by Amazon CEO Jeff Bezos,” said Lee Joon, chief communications officer at the Samsung Future Strategy Office. “The meeting took place in Menlo Park, California. Lee visited Samsung Electronics’ offices nearby on his way back home.”

Prior to the event, he said, the vice chairman met with “two or three” chiefs of U.S. card companies. He did not elaborate.

Things appear to be going smoothly for Samsung when it comes to launching the mobile payment service here.

The company said on Wednesday it will establish a partnership with six domestic card companies by summer to launch Samsung Pay during the second half of the year.

Experts have high expectations for the new payment system, arguing that Samsung Pay has several technological advantages over Apple Pay, one of which is its support of magnetic secure transmission (MST) technology.

It has sparked speculation that Samsung will sell more than 50 million Galaxy S6s and Galaxy S6 edges globally in a couple of months after their release.

Yet the vice chairman seems to be guarding against taking too optimistic an approach.

“It remains to be seen,” he told reporters upon arrival at Incheon International Airport after being asked about sales outlook for the new devices.

He said “Really?” after being told about upbeat outlook for Galaxy S6 and Galaxy S6 Edge.

Analysts said Lee’s leadership will be put to the test with the launch of the new devices and payment system because they are Samsung Electronics’ first fleet of products to be rolled out under his direct control.

The 47-year-old has taken control of the Seoul-based electronic giant since his father and Chairman Lee Kun-hee fell ill last year.