Apple, say hello to 'Samsung Pay'

Samsung Electronics Co. has thrown another hat into the mobile payment ring with its recent smartphone launch.

The company has unveiled two new flagship Galaxy smartphones and a mobile payments system in partnership with MasterCard. The new Samsung Pay will enable MasterCard cardholders to use their new Samsung Galaxy S6 phones for everyday in-store purchases. (Both phones will ship with the technology built-in.)

The service uses the magnetic secure transmission technology that Samsung acquired via its recent purchase of LoopPay, which will allow it to be accepted at most retail checkouts without any change to their existing hardware. Every purchase made with a MasterCard using a Samsung Galaxy S6 will offer the security, benefits and guarantees of a digital MasterCard transaction including the latest tokenization technology, according to MasterCard. Owners of the new device will be able to use their MasterCard credit and debit cards from participating banks directly through Samsung Pay.

“This is an exciting time for payments,” said Ed McLaughlin, chief emerging payments officer at MasterCard. “As consumers are increasingly relying on their mobile devices in their everyday lives, we are excited to work with an industry leader like Samsung to deliver new payment options to our cardholders around the world. We have been a pioneer of mobile commerce innovation for years and together we’re delivering a digital payment experience that is both simple and secure.”

Samsung Pay will first be made available for U.S. consumers this summer. MasterCard will be working with Samsung to roll out Samsung Pay to additional global markets including Korea.