Post on 05-Apr-2018
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Samsung PayUS MOR 11-16-2016
Confidential & Proprietary
How Samsung has made Innovation Become Mainstream in Payments
Samsung: A global market leader with the most valuable brand
#1Global Market Share
TV
Smartphone
Refrigerator
Smartwatch
Mobile Phones
- Display Search
- GFK/Traqline
- Strategy Analytics
- Strategy Analytics
- Strategy Analytics
Samsung: A market innovator
Gear VR Family HubGear 360
Samsung PASSSamsung Pay
The evolution of mobile payment
1st iterationBuying things with the phone for the phone• Ringtones• Screen wallpapers
2nd iterationBuying things with the phone in a store• UICC: Isis/Softcard• Embedded SE:
Google Wallet
3rd iterationEmbedded SE• Apple Pay• Google Wallet
4th iteration• Tokenization leads to HCE
NFC (Android Pay, Samsung Pay)
• MST: Samsung Pay ( Mass Acceptance)
Today
Wallets
Everywhere
Encouraging progress in the mobile payment market
INCREASING
CONSUMER
AWARENESS
More
consumers are
aware of
mobile
payment
1
DECREASING
SECURITY
CONCERNS
For all wallets,
security
concerns are
becoming less
of an issue
2
OMNI-
CHANNEL
DEVELOPMENT
Mobile
payment
options are now
available in-
store, in-app
and online
3
EXPANDING
SERVICE
OFFERINGS
Mobile wallets
are expanding
beyond just a
payment
instrument with
value added
services
4
There are still overall market challenges
SLOW
ADOPTION
Consumer
Adoption to
Mobile Wallet is
still low.
Adoption at ~
less than 20%
1
GROWING BUT
OVERALL LOW
CONSUMER
AWARENESS
Consumer
Awareness
takes time and
money
2
SKEPTICAL
MERCHANTS
Merchant sees
little value in
mobile wallets
(today) and are
focusing
exclusively on
their own apps
3
LIMITED
DEVICE
COVERAGE
Partners will
prioritize
platforms with
the largest
market share, or
companies that
are cross-
platform
4
Despite challenges Samsung Pay is used more often than competitors
Source : PYMTS.com
Samsung Pay – All cards in one wallet
Samsung PaySimple. Secure. Works almost anywhere you can swipe or tap your card.
It’s Fast
Secure Tokens via NFC + MST
Accepted almost anywhere because it works with
both existing and new payment technologies
Payment, Gift cards, Private Label cards, Loyalty
cards
Samsung Pay brings value to merchants and
consumers beyond just mobile payments
Digital Wallet Features & Benefits Advantages
• Credit & Debit
• Gift Card
• Membership
• In-App/Web
• Deals, Offers & Coupons
• Samsung Rewards
• Promotions & Sweepstakes
• Geo-Functionality
• Secure
• Simple
• Wide Acceptance (MST)
• Merchant Centric
With MST technology, Samsung Pay is accepted almost anywhere
Magnetic Secure Transmission (MST)
is a technology that emits a
magnetic signal that mimics the
magnetic strip on a traditional
payment card.
MST technology is accepted at
nearly all payment terminals with a
card reader.
What MST means to consumers and merchants
Ease of use: just tap and pay
Availability of acceptance: MST is accepted almost everywhere,
especially in SMBs, Mom and Pop storesConsumers
Merchants
No equipment upgrade required: MST is accepted at non NFC
terminals. Samsung Pay works at many top merchants that don’t
have NFC terminals including some of the largest national grocery
chains and big box stores
Samsung Pay Innovation – Value Added Services
Membership Deals and Offers Gift cards
QSR
Movie Grocery/
Gas-Conv
Mass MerchantSpecialty
Pharma
• Sales
• Card-linked offers
• Coupons and deals
• Save-To-Pay
• Buy-One-Get-One “BOGO”
• Allow card loads not in store
Rewards
• Earn Points Per Transaction
• Achieve Monthly Status Tiers
• Redeem Points for Rewards
Samsung Pay – Continuous Innovation:In-app and in-browser solutions
75%
13%
12%
Online commerce
Desktop browser Mobile Browser In-app
Online commerce is growing rapidly across channels
Direct in-app partnerships
Mobile & desktop browser solutions
Cloud Wallet Partnerships
&
Additional Tier 1 merchants in H1 2017
27% annual growth Emerging browser
checkout standards
9% annual
growth
9% annual
growth
5%
7%
14%
16%
26%
32%
No Facebook log-in option
Confusing error messages
Unable to modify order
Back button doesn't work
Too many form fields
Fill in same information twice
Samsung Pay – Continuous Innovation:W3C browser checkout
Online checkout remains a pain point for consumers, who abandon their shopping carts
during cumbersome checkout processes
1%
2%
3%
16%
22%
26%
Smartphone
Tablet
Desktop
Cart conversion
Visit Conversion
Most frustrating part of online checkout experience Online conversion rates
Source: VWO eCommerce Cart Abandonment Report, 2016
Samsung Pay – Continuous Innovation:W3C browser checkout
W3C Improves consumer experience to drive sales
– WWW standards committee
• Reduce friction and cart abandonment
• Eliminate checkout forms and payment bugs
• Leverage disparate, secure payment
methods
• Standardize payment flows
Merchant benefits
Consumer benefits
• Reduce frustration
• Streamline user checkout flow
• Links to user’s preferred payment method
A web API that allows merchants to
easily accept payments from
different payment methods with
minimal integration. User agents
(e.g., browsers) will facilitate the
payment flow between merchant
and user.”
-W3C (web standards
organization)
“
Samsung Pay – Continuous Innovation:Samsung PASS
Samsung Pass, now available on Samsung Galaxy S8 and S8+, enables Simple & Secure
biometric authentication through iris and fingerprint in a fully integrated way.
Simple
Secure
Integrated
Samsung Pay – Innovation beyond 2017Internet of Things
Samsung Pay – Innovation beyond 2017
Galaxy S8
Thank you