Samsung Pay was launched in Switzerland in April 2017, and the service will begin operating at the end of May. This moneyland.ch Q&A answers the most important questions about this mobile wallet.
How can I settle payments using Samsung Pay?
You can use Samsung Pay to pay by holding your phone against the point-of-sale (POS) terminal. A contactless connection is made using either near field communication (NFC) or magnetic secure transmission (MST) technology. MST lets you settle payments at any POS terminals capable of reading the magnetic stripe on payment cards, and is only available on newer Samsung devices. Payments are authorized using a PIN, iris scan or fingerprint scan. An internet connection is not required.
Which devices are compatible with Samsung Pay?
Compatible phones include the Galaxy S8 and S8+, Galaxy S7 edge, Galaxy S7, Galaxy S6 edge+, Galaxy Note5, Galaxy S6 edge, Galaxy S6 active, Galaxy S6, Gear S2 (using NFC) and Gear S3. Samsung Pay cannot be used on the iPhone or other Apple devices.
What third-party services do I need in order to use Samsung Pay?
In order to use Samsung Pay you need to have a credit card or prepaid card issued by a Samsung Pay partner.
Which payment cards can I use with Samsung Pay?
Credit and prepaid cards using various payment networks (Visa, MasterCard, etc.) work with Samsung Pay. Debit cards like Maestro, V-Pay and Postfinance cards cannot be used.
Initially, only Cornèrcard, Bonuscard, Swisscard and prepaid card issuer Swiss Bankers have partnered with Samsung Pay. It is likely that more Swiss card issuers will partner with Samsung in the future.
The credit card and prepaid card comparison on moneyland.ch makes it easy to find out which cards work with Samsung Pay. Just select the “Samsung Pay” filter to limit results.
What is the maximum payment which can be made using Samsung Pay?
Samsung Pay does not limit payments. The limit is set by the credit card or prepaid card which you use with Samsung Pay.
Every transaction made using Samsung Pay must be authenticated (as with Apple Pay). Because of this, the legal limit of 40 francs for unauthenticated contactless payments does not apply.
Where can I pay with Samsung Pay?
Unlike Apple Pay, Samsung Pay’s use is not limited to NFC-enabled terminals. Samsung’s MST technology, which simulates the magnetic stripes found on most payment cards, can be used to make contactless payments on many payment card terminals. Because of this feature, Samsung Pay can be used to pay at many more Swiss merchants than Apple Pay.
Can I use Samsung Pay to shop online?
No. At this point it is not possible to pay for online purchases using Samsung Pay.
What fees am I charged when I use Samsung Pay?
When you settle payments using Samsung Pay, you only pay the fees which normally apply to your credit card or prepaid card. Your card fees are defined by the card issuer. Samsung Pay does not charge you as the user additional fees. If your payment card rewards you for purchases, you earn these rewards when you use your card with Samsung Pay just as you would when you use your card for any other purchases.
Just as when you use your payment cards on their own, you should pay careful attention to foreign transaction fees when paying for purchases outside of Switzerland. Foreign transaction fees are clearly broken down in the moneyland.ch credit card comparison.
Which fees do I have to pay to accept Samsung Pay payments?
As a merchant, you pay the same merchant fees which you would pay if the customer used their credit card to pay.
So who pays for the Samsung Pay service?
Unlike Apple Pay, which charges your card issuer or bank for transactions made, Samsung Pay does not charge card issuers for transactions. At least initially, Samsung is offering the service to partnered card issuers free of charge in an attempt to encourage participation.
How secure is Samsung Pay?
Using Samsung pay to make payments is relatively secure. Your actual credit card number is not stored on your phone or in an app. A new token number is generated for each transaction. If you Samsung phone is stolen, you can have Samsung Pay deactivated without freezing your credit card account.
What are the advantages of using Samsung Pay?
Samsung Pay is widely accepted thanks to its MST technology which lets you settle payments at merchants which do not have contactless POS terminals. This is a major advantage over Apple Pay and is especially useful if you travel to countries where the magnetic stripe is still the de facto standard (like the United States).
However, regular credit cards and debit cards are even more widely accepted in Switzerland than Samsung Pay because they can be used at terminals which only read EMV microchips and not magnetic stripes.
What are the disadvantages of Samsung Pay?
Currently, Samsung Pay is only compatible with a limited number of Swiss credit and prepaid cards. Another disadvantage is that it cannot be used to pay for online purchases. Settling payments electronically as opposed to using cash generates records of your financial transactions, which may not sit well with privacy-minded individuals.