At the Mobile World Congress 2014, Samsung and PayPal made a big splash right away. It was revealed that the Galaxy S5, Samsung's new flagship smartphone (which includes biometric security as well as NFC) can be used to make payments at any merchant that accepts PayPal in store or online. We all know how aggressively Apple is moving into payments and Samsung didn't want to be left behind. In Paypal it finds a good ally that can provide it the right kind of ammunition and merchant base/user base required for making payments happen online and offline. Payments and Commerce is the new battleground for mobile/digital products supremacy with Apple, Samsung, Amazon, Google and others joining the party with incumbents like banks and Paypal.
"With a simple swipe of a finger, consumers can still securely log into their PayPal account to shop and pay with the convenience that mobile devices afford," said Chief Product Officer of PayPal, Hill Ferguson. "Customers can use their finger to pay with PayPal from their new Samsung Galaxy S5 because the Fido Ready software on the device securely communicates between the fingerprint sensor on their device and PayPal's service in the cloud.” Thats a lot of work that would have gone in the background. Partnerships like these can speed fast the process of streamlining payments and making them frictionless. Here is how it works:
- PayPal will be the first payments service provider to utilize fingerprint verification functionality, enabling Galaxy S5 users to shop via any merchant that accepts PayPal.
- The PayPal app will allow Gear 2 owners to check-in to pay at local stores, save and redeem offers and receive payment notifications while on the go.
- The only information the device shares with PayPal is a unique encrypted key that allows PayPal to verify the identity of the customer without having to store any biometric information on PayPal's servers, according to Ferguson.
- Consumers will be able to use the eBay and PayPal apps on the new Gear 2 watches beginning in April.
The Galaxy S5 includes a 2.5GHz quad core processor, a 5.1-inch full HD Super Amoled display. The smartphone runs Android 4.4.2 Kitkat. The company says it will be made available globally in four colors - white, charcoal black, copper gold & electric blue - in April 2014. PayPal payments will be available from launch in 26 markets, including Brazil, Australia, Hong Kong, U.K, Russia, and USA.