A CDE Definition
Samsung's digital wallet payment system introduced in the U.S. in beta in 2015. Supporting credit and debit cards as well as store and loyalty cards, Samsung Pay works with both old and new terminals, whether they read magnetic stripes or use NFC. In 2015, Samsung acquired LoopPay, developers of magnetic secure transmission (MST), which uses a small loop antenna inside the smartphone or in the case to transmit the card data magnetically to the terminal.
To make a payment on a magnetic stripe slider terminal, users position their device over the slider and press a button on the case or tap a button on the app. The first phones with Samsung Pay built in are Samsung's Galaxy S6 and Note 5 models. For earlier Android phones, a card-sized LoopPay module or key fob is available. See mobile payments service.
mobile payments service
Paying for merchandise or services in a store via mobile phone. A smartphone wallet app either holds prepaid funds or works like a credit card, and various authentication methods may be employed. As of late 2015, Apple Pay, Android Pay, CurrentC and Samsung Pay are emerging payments services in the U.S. See Apple Pay, Android Pay, CurrentC and Samsung Pay.
The "Next Big Thing"
When the Internet exploded in the 1990s, a variety of Web-based payments systems were developed; however, except for PayPal, most were abandoned. The distinct advantage of smartphones is that people generally have them while shopping, and built-in fingerprint readers add a significant level of security.
The primary technology used in mobile payments is near field communication (NFC), which allows a person to pass the phone over a terminal to quickly pay for merchandise. Many Android phones included NFC, and Apple finally added it with the iPhone 6. Barcodes can also be displayed on the phone and scanned by the merchant's terminal or vice versa. See NFC and barcode.
Like any "next big thing," mobile payments have to overcome the chicken-egg conundrum. The more retailers adopt a system, the more people use it, and the more people use it, the more merchants come on board. To fully embrace mobile payments, physical stores will have to support multiple systems. See mobile check deposit, Web payments service, digital wallet and smartphone wallet.
Before/After Your Search Term
Terms By Topic
Click any of the following categories for a list of fundamental terms.