5pc of StanChart’s credit card clients will adopt Samsung Pay
KUALA LUMPUR: Standard Chartered Bank Malaysia expects five per cent of its close to half a million credit card clients to adopt the new mobile payment method Samsung Pay by the end of this year.
Its head of retail banking, Aaron Loo, said the bank would seek out acceptance from the public by adding more terminals and enhancing its capabilities in digital payment.
“We have 30 per cent monthon-month (MoM) growth in the amount of clients that use Samsung Pay since its introduction in February.
“Over 60 per cent of our average spending customers are using Samsung Pay. Our segment of the market is working out well,” he told NST Business in an interview recently.
Loo believes the growth indicates a good start towards shifting into the digital economy for the betterment of the country’s financial ecosystem.
“We are actively promoting mobile payments to our existing clients by running a cash-back campaign.
“Our client-base is ready to accept this method.”
He said over time, as technology evolved, more mobile payment methods would be available to more devices, thus improving its adoption rate.
“It will have a snowball effect if we continue the growth trend of 30 per cent MoM growth over time, coupled with greater adoption among our customers,” he said.
Loo was also confident that the market would be seeing more people with Samsung Pay-compatible devices leverage on this new payment method.
On security concerns of the new payment method, Loo assured that the technology was much safer than handling cash.
He said users needed to activate the system by using their thumbprint.
“Whenever the phone communicates with the terminal, it does not exchange any of the card’s information as it will be ‘tokenised’ for security purposes in order to authorise the transaction,” he said.
Loo said there was no chance for the merchant and the phone to exchange the card’s information.
“Hence, there is no chance that anyone can sniff out the customer’s 16-digit card and card verification value (CVV) number,” he said.
Asked about earnings expectation from the new mobile payment method, he said Standard Chartered was not focused on revenue, as it would rather focus on its engagement with its clients.
“From a revenue standpoint, it will have a marginal contribution. Once we have good engagement with customers, indirectly it will be a big boost to us. It is really about ensuring our clients have a full suite of options with us.”