Dubai really a hub for innovation
Samsung Pay promises seamless, secure transactions
Samsung Pay and Huawei OpenLab start in the UAE, and they have a lot to offer for our technological lives.
Finally, after almost two years since its first rollout, Samsung Pay is in the UAE. And the South Korean bellwether’s answer to Apple Pay and Android Pay — and even Microsoft Wallet — is being positioned to give them a run for their money (pun intended).
Samsung Pay was initially released on August 20, 2015, in the company’s homecourt of South Korea. The UAE is the first in the Middle East and 14th globally to get the service, though it is present in 17 countries, including early adopters.
On that last note, certain users in the UAE were actually able to get a taste of Samsung Pay ahead of Thursday’s launch. The company rolled out an early access phase for the service on April 4, working with banks including Emirates NBD, National Bank of Abu Dhabi, Abu Dhabi Islamic Bank, Mashreq, RAKBank and Standard Chartered, allowing their customers to give it a spin.
So what does this mean? Well, basically, you can pay just by using certain Samsung devices supporting magnetic secure transaction and near field communication technologies — you know, just by simply tapping your device on the payment terminal. In the UAE, you can use the Galaxy S8, S8+, S7, S7 Edge, S6 Edge+, Note 5, the 2016 versions of the A5 and A7, the 2017 A Series and Gear S3 to avail the service.
Who needs cash all the time, anyway?
Samsung promises that its Pay service can be used “almost anywhere” in place of your debit or credit card. And that’s great for a place like the UAE especially Dubai, where digital convenience is just like having your usual quick shawarma snack at your conveniently-located cafeteria near your place.
It’s also an added weapon to your mobile arsenal; I am the type of person who carries a small amount of cash — sometimes, even none — while going out, relying on my debit card to pay for stuff and my Nol card to get around the city on public transport modes.
“We are confident that we are providing customers and merchants a mobile payment service that will pave the way for a cashless society in the UAE,” Mohammad Gharaibeh, head of enterprise at Samsung Gulf Electronics’ mobile business, said in a statement to Khaleej Times.
It’s a fact that mobile payment methods are growing. However, a big question still remains: are most of us actually ready to adapt to the next generation of payment?
Well, a lot still do, apparently...
A recent study by Crimson Hexagon showed that among Arabic speakers, cash is the undisputed king. From 2012 to 2016, their survey revealed that 73 per cent of them prefer bills and coins compared to 27 per cent who are English-speaking.
Furthermore, when it comes to plastic — a role Samsung Pay essentially plays — only eight per cent of Arabic speakers favour it versus 56 per cent of English speakers. (While it wasn’t mentioned in the survey, we assume that the remaining 36 per cent may either be undecided or, most likely, use both channels to pay.)
On a broader note, Middle East consumers in general are indeed leaning towards new methods of payment. The study showed that over half — 56 per cent — of transactions in the region are done via debit and credit cards, with cash at 27 per cent. (The rest is done by PayPal.)
Sure, issues are there on security when it comes paying through digital means — the biggest reason why there are people hesitant about using it — but we must understand that the biggest companies are doing their best to ensure that all our precious data are locked in akin to a safe. Samsung has promised multiple layers of security to ensure that.
During Samsung Pay’s first-year anniversary in August 2016, they celebrated it by revealing that the service was used for over 100 million unique transactions.
Samsung, however, will have to do more to reach out to more customers. Juniper Research figures in an April 11 report show that Apple Pay is still dominating this game with over 86 million registered users so far in 2017, compared to Samsung Pay’s 34 million. Android Pay, meanwhile, is hanging in there with around 24 million.
Growth-wise, Samsung Pay’s user base grew 89 per cent from 2016’s 18 million, which is 500 per cent from 2015’s three million. Apple Pay, meanwhile, swelled 91 per cent from 2016’s 45 million, which is 200 per cent bigger than 2015’s 15 million.
As more people are educated and made getting used to mobile payments, we’ll definitely see the service used more and more. And with further advancements expected in the future, we may have another tech-service war brewing in our hands.
— alvin@khaleejtimes.com