Samsung Electronics, which is the market leader in mobile payments in South Korea, has teamed up with internet giant Naver to improve its digital payment service, Samsung Pay. This partnership comes after Apple announced that Apple Pay will come to Korea in March 2023. Samsung is worried that after Apple Pay launches, Galaxy users will switch to it, so this partnership aims to keep Samsung’s hold on the market. Samsung’s partnership with Naver Financial, which was made public in late February, will support Samsung Pay and make users’ access to digital payments easier. Given that Naver Pay is Korea’s second-largest mobile payment provider, the deal guarantees Samsung’s much stronger presence in the mobile payments sector.
After Visa, which had $10 trillion in transactions, Apple Pay was introduced in the US in 2014. Since then, it has grown to become the second most popular digital payment system in the world. With $6 trillion in transactions in 2021. In the same year, Samsung Pay spent more than $200 billion using a technology called magnetic secure transmission (MST). On Monday, Samsung stated that they are partnering with Naver Financial to improve the integration between the two popular payment services before the release of Apple Pay. A statement from Samsung on Mon With Naver Pay, the leading provider of online payments in Korea. Utilising Samsung’s offline 5G networks and Samsung Pay’s offline payments working at roughly 550,000 online stores on Naver. The partnership is regarded as advantageous for both businesses.
Also Read: Revolutionize the Way You Send Greeting Cards with QR Code Video Messages
Samsung smartphones account for 83% of the Korean market, according to Counterpoint Research data, while Apple only accounts for 13%. After the iPhone 14 came out in the fourth quarter of 2022. Apple passed Samsung as the biggest company in the world, but the difference was small: 23% for Apple and 19% for Samsung. With 16 million users as of November 2022. Samsung Pay was the most popular financial services app in Korea, despite its flaws on a global scale. Although the alliance with Naver Financial makes Samsung Pay stronger, the future is still unclear.
According to Vinu Labs Inc.’s survey of 2,000 college students. 89% of respondents thought the Apple brand was “trendy,” with other responses describing it as “refined” and “luxurious.” According to Gen Z Galaxy users, the lure of Apple Pay will convince them to switch to iPhones. Insiders in the local industry are eager to see how Samsung performs following the introduction of Apple Pay. Even though Samsung is trying to stop Apple Pay from growing, its market share is expected to go down. A company official says that Apple Pay won’t be as convenient. At first because it won’t be able to pay for things like transportation. Counterpoint says they don’t think Apple Pay will have a big effect on the Korean smartphone market. As Samsung steps up its game to stay competitive. Perhaps Galaxy users will benefit from Apple’s entry into the Korean market. Samsung is likely to keep being the leader in mobile payments thanks to its partnership with Naver Financial and its large share of the market.
