Samsung and Visa allied to accelerate mobile payments using NFC

Samsung and Visa allied to accelerate mobile payments using NFC

Samsung and Visa recently announces their global alliance to provide payments through mobile devices using built-in NFC. While Samsung is the leading smartphones manufacturer, Visa has the same position in the financial markets, by joining their hands together, the coming future will even leaves the concept of plastic money in the form of cash cards and the money would take the shape reforms in the  handheld gadget, smartphones.

Samsung and Visa alliance for mobile payments

Samsung and Visa allied for NFC mobile payments

According to the agreement between the two concerns, financial institutions will able to use the Visa Mobile Provisioning Service for securely download payment account information to NFC-enabled Samsung devices, though this service is planned to be launched only at a number of regions. On the other side, Samsung will provide an app, coined as Visa payWave app in their upcoming NFC-enabled smartphones to make ‘wave and pay’ contactless payments using mobile devices. This app is also likely to be a part of the upcoming flagship smartphone the Galaxy S IV.

The app will of course reduce the time and efforts of the end-users in making financial transactions but on the other part, a number of places where the transaction is to be placed should have the NFC-enabled terminals. This process will certainly take time to make the mobile payments possible using NFC at all areas.

The step taken by the Korean giant with partnering Visa would give a tough competition to Google which already provided the same feature in the form of Google Wallet. In developed regions including US, Canada and UK, the form of mobile payments has already been introduced by Google so Samsung’s new strategy will definitely give a cut-throat competition in such areas.

On announcing the alliance agreement, Jim McCarthy, global head of product, Visa Inc said;

“Samsung devices enabled with Visa payment functionality will no doubt be a powerful product offering – especially in markets where paying with a mobile device is becoming commonplace. However, the key to making mobile payments broadly available all over the world is to offer financial institutions a secure way to provision millions of smartphones with payment account information – and that is exactly what Visa and Samsung are ready to deliver.”

As Visa is excited to take a step in the era of smart devices with smart features, Samsung has promised to work on that step. On the occasion, Samsung Electronics President and Head of Media Solution Center, Dr. Won-Pyo Hong said;

“Samsung has been a pioneer in NFC devices and is again leading the way in enabling NFC-based mobile payments. The partnership with Visa represents a step towards a global mobile payment platform. We believe that we have a strong value proposition for financial institutions that will ultimately allow consumer choice in NFC payments.”

At the Mobile World Congress (MWC) 2013, Visa is demonstrating the new concept of mobile payments in the form of Visa payWave and Mobile Provisioning Service. Samsung NFC-enabled upcoming smartphones will have such features pre-installed, in the coming months, Visa will also expands the support at a wider level. So are you ready to use your smartphone as a cash card?