Samsung Plans US Credit Card to Compete with Apple Wallet

Samsung is taking strategic steps to compete with Apple in the financial services sector by launching its own credit card in the United States. The initiative is part of a broader strategy to enhance its ecosystem and secure customer loyalty as hardware innovation in the tech industry slows. By integrating financial services into its offerings, Samsung aims to create a more cohesive user experience that extends beyond its traditional product lines of smartphones and appliances.

In an effort to establish its presence in the financial market, Samsung is reportedly in discussions with Barclays, a British bank, to introduce a branded credit card. This potential product, referred to as the “Samsung Card,” is expected to utilize the Visa payment network and provide users with cashback incentives. Users would be able to access these rewards through their Samsung accounts, enabling them to spend cashback on Samsung products or at various partner retailers.

Expanding Samsung Wallet and Financial Services

The proposed credit card is part of a larger expansion plan for Samsung Wallet, the company’s mobile payment system. Alongside the credit card, Samsung is exploring the launch of additional financial products in the US. These offerings may include digital prepaid accounts, high-yield deposit accounts, and improvements to its existing “Buy Now, Pay Later” service. The overarching aim is to significantly boost the adoption and usage of Samsung Wallet, which has not yet achieved the level of success seen by Apple Pay in the region.

While details remain tentative, sources indicate that negotiations between Samsung and Barclays have extended longer than initially expected. A formal announcement regarding the credit card and related financial products could potentially surface before the end of 2023.

This strategic pivot reflects Samsung’s intent to diversify its portfolio by incorporating financial services, enhancing the attractiveness of its ecosystem amid stiff competition from established players like Apple. By broadening its financial offerings, Samsung aims not only to drive user engagement but also to stimulate sales across its extensive range of products.

As Samsung moves forward with these plans, the implications for consumers and the tech landscape in the US could be significant, marking a new chapter in the ongoing battle for dominance in the mobile payment and financial services arena.