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Samsung delays planned start of new smartphone payments service

SOUTH KOREA — Samsung delayed the start of its new payments service, hindering its ability to gain ground on a competing service from Apple.

Samsung unveiled the payment service in March as part of its new high-end Galaxy S6 smartphone range. Photo: Bloomberg

Samsung unveiled the payment service in March as part of its new high-end Galaxy S6 smartphone range. Photo: Bloomberg

SEOUL — Samsung Electronics has delayed the start of its new payment service, which would hinder its ability to gain ground on a competing service from Apple.

Samsung Pay will kick off services in the United States and South Korea from September, when the company unveils its next high-end device, executive vice-president Rhee In Jong told an investor call yesterday. The firm had previously predicted that it would start as soon as next month.

Google, Apple and PayPal are among companies eyeing a piece of the mobile-payment market, as customers seek to use smartphones to buy coffee, clothing and food at retail outlets and restaurants.

The market will top US$142 billion (S$191 billion) by 2019, up from US$67 billion this year, said Forrester Research.

“We are targeting a September time frame,” Mr Rhee said. After launching in South Korea and the US, Samsung will take Pay to other markets such as Europe, China, Australia and South America, he added.

Samsung announced its new payment service in March, unveiling the feature as part of its new high-end Galaxy S6 smartphone range. It partnered with companies such as MasterCard and Visa on the new service, which is to be compatible with 90 per cent of card readers, the tech giant said at the time.

Samsung bought LoopPay in February to help it develop technology for mobile payments. LoopPay makes it easier for retailers to accept payments via smartphones.

Separately, Samsung’s head of investor relations Robert Yi said the company has no plans to merge with sister firm Samsung SDS. Responding to recent market speculation about such a possibility, he said: “The management wants me to express clearly that we do not have a plan to merge with SDS.”

Some investors and analysts have said the two companies might merge in the near future to ensure a stable transfer of management control from current Samsung Group leader Lee Kun-hee to his children. BLOOMBERG

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