Samsung's speed of execution to stay ahead of the curve is amazing.They have this uncanny ability to buy, build or somehow manage the show, in all important areas of mobile device innovations. Infact now spanning across the Internet of Things. So what's up with Samsung in payments. In a big move, yesterday Samsung announced that PayPal was now a payment option across their services and servers. This enables consumers to pay for their apps, e-books, etc. in the Samsung apps and Hub stores. With PayPal’s expectation of reaching $20 Bn in mobile payment volume this year, up from $14 Bn in 2012 and Samsung's claim of 30% global market share in smartphones, this is truly a meeting of giants.
In some small way, it could be an answer to all the hype Apple is getting in payments with its fingerprint TouchID and iBeacons. Samsung definitely would be feeling left behind because unlike Apple which has 500 Mn+ customer card details stored/used on its App Store, Samsung has handed over that privilege to google by depending on Android/Google. It could also be totally about Paypal, being on a M&A and collaborations spree, to make a big dent into mobile payments (recent Braintree acquisition).
Whatever it is, Samsung customers and developers should feel happy. Its integration of PayPal solutions with Samsung Apps enables developers to receive their money safely whilst having access to 132 Mn PayPal customers worldwide. Rather than having to wait many days for wire transfer, they can get paid quickly and without much hassle.
Samsung’s international version of smartphones, come with two stores for customers to obtain apps and other content. Google Play Store and the Samsung Hub. “People want fast, easy and choice across any connected device. That’s why we’re making it easier for Samsung Apps and Samsung Hub users to pay for their apps, music, movies, TV shows, e-books and games”, says PayPal. “Samsung Apps and Samsung Hub consumers can simply authenticate with PayPal to make a purchase. In a few seconds, they can start downloading their favorite TV show or book without the burden of entering their credit card or address information” they stated.
Currently, PayPal has been made available as a payment option for Samsung apps and hubs in 9 markets including Italy, Australia, Germany, France, Singapore, Malaysia, Spain and U.K. It is coming soon to the U.S. For customers. As for app developers, PayPal is available as a payout option globally.
LTP View: With this partnership PayPal makes another aggressive move into mobile after the acquisition of Braintree. It can expand its reach into even more mobile devices and Samsung presents a larger consumer base. Although there is not much difference between Samsung’s app store and Google play, the recently released Galaxy Gear smart watch and its reliance on Hub may push people to use it more.