Samsung Pay Goes Live in Malaysia

Samsung Malaysia Electronics announced the launch of Samsung Pay. The launch was opened with a vibrant performance of musical sketch at Suria KLCC, that attracted a crowd of curious onlookers. That a strategic mall was chosen for Samsung Pay to “go live” is by careful design, so that consumers and media alike, can try out this new app at virtually all the merchants in KLCC.

Malaysia is the 11^th country in the world where Samsung Pay is rolled out. The other ten countries are Korea, USA, China, Spain, Australia, Singapore, Puerto Rico, Brazil, Russia and Thailand.

 What is Samsung Pay?

Samsung Pay is a mobile payment service that is simple, safe and available almost anywhere you can swipe or tap your card at merchant locations. It combines NFC (Near Field Communication) with Samsung’s proprietary MST (Magnetic Secure Transmission) technologies.

It uses 3 layers of security – tokenization, biometric authentication as well as its own KNOX protection. If you have Knox installed on your device, Knox Active Protection (KAP) will be automatically enabled. KAP provides real-time kernel protection (RKP) and DM Verity. KAP defends against a class of attacks which attempts to manipulate critical process data.

Uses thumbprint biometrics or PIN for user authentication

 Video of how Samsung Pay is used for transactions

 “Samsung Pay not only supports the shift towards digital wallets today, but provides a conducive and future-proof avenue for secure e-payments in Malaysia,” said Mr. Lee Jui Siang, Vice President of the Mobile and IT Business Unit, Samsung Malaysia Electronics. “As Samsung has done with other markets, we have taken a customized approach to our launch in Malaysia, collaborating with key partners to turn swift and secure mobile payments into reality for our users.”

Whilst not quite ready to share any number nor financial projections, Elle Kim, Vice President of Payment Business Group, Samsung Electronics, who was here to grace the occasion, revealed that to date, over 90 per cent of merchants in Malaysia have adopted the system and are equipped to offer users this convenience in mobile payment. These merchants range from food and beverage outlets, fashion and lifestyle retailers to supermarkets and department stores.

Forging partnerships

Samsung expanded its partnership with several leaders in the banking industry as part of its strategic move to launch and broaden its Samsung Pay ecosystem in Malaysia. CIMB, Citibank and Standard Chartered have joined as partners, with Hong Leong Bank coming on board soon. This creates a wide platform for their respective customers with eligible payment cards to enjoy a more seamless digital mobile payment experience.

These partnerships enhance Samsung’s existing collaboration with Maybank; and are an extension of its current affiliation with major payment networks, Mastercard and Visa, as well as loyalty card partners, B Infinite, Bonuslink and Sunway Pals.

“We are pleased to bring Samsung Pay to Malaysia – a country which is embarking on an ambitious and exciting path towards a cashless society. More and more, consumers are not just looking for a payment service, but an upgrade to their wallets to create a truly digital experience for everyday transactions and activities,” said Thomas Ko, Vice President and Global GM of Samsung Pay at Samsung Electronics.

(L-R): Dan Seung Han, Director of Samsung Pay, Samsung Electronics, Elle Kim, Vice President of Payment Business Group, Samsung Electronics, Lee Sang Hoon, President of Samsung Malaysia Electronics, Lee Jui Siang, Vice President, IT & Mobile Business Unit, Samsung Malaysia Electronics

“We envision that Samsung Pay will continue to push the boundaries of what is capable with a phone, and create a truly mobile wallet. We look forward to developing and evolving Samsung Pay and bringing the benefits of this change to our users.”

KB Ng, Visa Country Manager for Malaysia continued, “The launch of Samsung Pay in Malaysia will bring the growth of contactless payments in Malaysia to the next level. Samsung Pay uses Visa Token Service which replaces cardholder information with a unique digital identifier without exposing sensitive account information.”

“Consumers today are already embracing contactless payments, with over two million Visa payWave transactions conducted monthly and double digit month-on-month growth as of January 2017. A recent study that Visa conducted also showed that seven in ten Malaysians are ready to adopt mobile payments and we are confident this growth will continue to accelerate as we move in tandem with the nation’s aim of becoming a cashless society.”

Perry Ong, Country Manager, Malaysia and Brunei, Mastercard added, “In Malaysia, we are seeing an encouraging uptake of mobile payments among consumers with a growth rate of more than 40% over the past 3 years. The collaboration is therefore timely as we strive to deliver newer innovations to cater to the rapidly evolving mobile payments space.”

He elaborated, “The launch of Samsung Pay is in line with the government’s efforts to transition Malaysia into a cashless society through the implementation and acceleration of e-payments adoption. The collaboration will encourage and support the continued growth in the usage of contactless payments at a time Malaysia is committed to increase its adoption, with the vision that contactless terminals will make up 30 percent of all payment terminals by 2020.”

“The Samsung partnership opens yet another digital banking channel that will enhance customer experience and engagement with Citibank. Over 40% of Citibank customers in Malaysia have shown a preference for digital banking. Our plan at Citibank in Malaysia is to grow the stronghold we have in the digital space and to ensure that customer interactions and experience are truly remarkable,” said Federico Grigera, Head of Cards and Consumer Lending at Citibank Berhad.

Throwing in a carrot, Aaron Loo, Head of Retail Banking, Standard Chartered Bank Malaysia offered, “We are rewarding clients who are early adopters up to 20% cashback for transactions done through Samsung Pay until 30 April 2017. New clients who sign-up for the Standard Chartered credit card will enjoy an additional RM150 cashback.”

 What gives?

Keeping its eye on the goal, Samsung is  here to increase the sales of its mobile devices. To this end, Samsung will continue to develop lifestyle-enhancing apps that will encourage the sales of Samsung devices. So what gives? When asked when the Samsung Pay app will be released to non-Samsung branded phones, Lee coyly said…”Only when you switch to a Samsung phone!”

In Malaysia, Samsung Pay is currently  for these models: Galaxy S7 and S7 edge, S6 edge+, Note5, Galaxy A5 (2017 and 2016) and A7 (2017 and 2016).