Samsung and PayPal Team Up to Bring Secure Mobile Payments to the Wrist

by Istvan Fekete on September 22, 2014

With the iPhone 6 and 6 Plus, Apple is finally ready to step into the emerging mobile payments market. The built-in NFC chip allows iPhone 6 and 6 Plus owners to use their device to pay for goods in the US, in places where the POS system is equipped with an NFC chip.

But Apple isn’t stopping stop there: in a video aired during the event, the company also teased us with a feature of the forthcoming Apple Watch, and that is using the device while paying for goods and services in places where you can also use your iPhone 6 or 6 Plus. But it may happen that you don’t have the device on you (well, it’s kind of unlikely, but it may happen).

This is a major step for Apple in its foray to the mobile payment market: it will actually have two devices owners can use to make a payment. Since mobile payments is the next buzz, all the powerful players want their share.

So, shortly after Apple announced the Apple Pay and Apple Watch, Samsung immediately announced that it is working on its own mobile payment strategy: it will release a smartwatch that owners can use to pay for goods.

The South Korean tech giant is doing this alone: it has a highly motivated partner, PayPal, which is aiming high, to bring secure mobile payments to the wrist.

“We are currently developing the smart watch equipped with fingerprint identification technology and relevant solutions through cooperation with PayPal, the world’s most renowned financial transaction service company, as well as Synaptics, a global company specialized in biometric verification. By the earliest, the third generation smart watch to be released early next year will have this new system in which payment is authorized immediately when users identify themselves through biometric sensors such as a fingerprint or login.”

According to Business Korea, Samsung has added Synaptics to the mix, so the future smartwartch may feature a fingerprint authentication technology as well.

The partnership between Samsung and PayPal isn’t new: the two had already partnered up for the Samsung Galaxy S5. The next-generation smartwatch is just another battle in the war between the tech giants for market share in a quickly growing market.

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Written by: Istvan Fekete. Follow by: RSS, Twitter, Facebook, or YouTube.

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