Samsung has announced Paypal will soon work with its Samsung Pay mobile wallet.
The Korean tech giant says Samsung Pay users will be able to connect their Paypal accounts to their virtual wallet, allowing them to pay for goods online, in–app and in–store wherever Samsung Pay is accepted.
And because Samsung Pay uses magnetic secure transmission (MST) technology, which allows consumers to pay with their phones at terminals that don’t support contactless payments via NFC, it means owners of Galaxy smartphones will be able to pay virtually anywhere using a Paypal account.
Using Paypal on Samsung Pay does not stop users adding gift and loyalty cards to Samsung’s mobile wallet or using Samsung Pay as a standalone service.
Rather, it offers more scope for security-minded consumers who’ve used Paypal for years.
The move is likely to severely impinge on Apple Pay, which does not feature MST and only supports payments via Apple ID. Apple is unlikely to team up with Paypal.
At the moment, Samsung Pay with Paypal is only launching in the United States, although both companies have promised to expand to the UK ‘soon’.
Bill Ready, PayPal’s Chief Operating Officer, said: “By adding PayPal to Samsung Pay, we will combine Samsung’s ubiquitous payment solution with PayPal’s seamless and secure mobile wallet – delivering easy access to a simple, secure payment experience.”