Mobile Payments: Exploring the World of Samsung Pay

1. Introduction

“Samsung Pay” is a mobile payment and digital wallet service offered by Samsung Electronics that allows users to make payments using a mobile phone, tablet or smartwatch. Instead of using a card to make a payment, Samsung Pay uses the card’s details. Using Near Field Communication (NFC) and Magnetic Secure Transmission (MST) technologies, Samsung Pay transmits digital card and account information to a payment terminal, similarly to a contactless payment. However, all the transactions with Samsung Pay use tokenization so the card’s actual number is never used in the transaction and no card details are ever shared with the payment terminals. This reduces the possibility of your card details being compromised and tokenization adds an extra layer of security for your payment details. Also, the use of a simple and convenient mobile app as a “middle-man” in the payment process means that the service could offer an advantage in comparison with manufacturer-specific contactless methods such as Visa’s PayWave or MasterCard’s PayPass. In the following chapter, we will further explain the security features of Samsung Pay. The ability of Samsung Pay to use MST-based contactless payment technology also means that the offer of Samsung Pay is not limited by the wide adoption of NFC payment terminals. Currently, all new payment terminals would be equipped with NFC, however, Samsung Pay could already work with 90% of the existing magnetic strip card payment terminals. Also, Samsung Pay is accepted at more places than any other mobile payment solution, as it supports end-to-end technology but MST-based option as well. So instead of fumbling through your physical wallet for your card, you can pay quickly and securely using your mobile device, with the significant potential for convenience. A career as a mobile app developer seems to be robust. Samsung Pay started its global expansion with launching in South Korea in summer 2015, and then launched in the United States in September 2015.

1.1 What is Samsung Pay?

Samsung Pay is a mobile payment and digital wallet service by Samsung Electronics that lets users make payments using compatible phones and other Samsung-produced devices. This method of payment is accepted at virtually all major outlets across the US and numerous outlets in countries such as South Korea. The app is available for all major mobile devices including Bixby, Gear, and Note. Like any other mobile payment service, when you pay using Samsung Pay, to protect your account from fraud, your card number is never stored on your phone, watch, or the merchant’s payment system. Every transaction uses a device-specific number and unique encrypted code. These two security safeguards, coupled with fingerprint and PIN authentication, provide one of the most advanced payment methods to date. With Samsung Pay, the concept of mobile payments is evolving. Buyers do not only enjoy the convenience of not needing to bring their wallet but also enjoy programs such as “Samsung Rewards”. This is a point-based rewards system whereby members earn points for every transaction. These points can be used to redeem rewards from 2,000 to 28,000 points depending on the nature of the reward. So really, users are getting the best of both worlds!

1.2 Benefits of Samsung Pay

There are also some security benefits that come with using Samsung Pay in preference to the more traditional payment methods. Chiefly among these is that merchants and retailers do not ever get to see or store your card details, so the risk of having your financial details compromised or stolen due to a retailer’s database being hacked is much reduced. This is because Samsung Pay generates a token for each transaction; the token, and not the card details, is what gets sent to the retailer. Also, Samsung Pay uses biometric authentication—not just the more usual fingerprint recognition, but also iris scanning and facial recognition—each time a payment is made. This means that even if your smartphone is lost or stolen, or you have been recently hacked, it is much harder for fraudsters to use your information to make payments as they would also have to find a way to fake the unique biometric markers. Lastly, using Samsung Pay earns the user reward points and you have the luxury of turning your phone into a loyalty card for use at your favourite retailers.

Unlike other mobile payment schemes that only allow you to register your debit and credit cards, Samsung Pay also enables the user to register gift cards and store cards. This means that several of your regular wallet’s contents can also be stored in Samsung Pay and save even more space. By consolidating all these accounts and cards on your smartphone, you are able to carry out fast and efficient payments virtually anywhere you can find a card machine, without the need to carry your wallet.

1.3 How does Samsung Pay work?

Samsung Pay works using a technology called Magnetic Secure Transmission. When the user adds a credit or debit card to Samsung Pay, the numbers on the card are not stored on the actual phone. Instead, Samsung Pay uses a process called tokenization. With tokenization, a unique sequence of numbers, known as the token, is created to represent the stored credit or debit card. When a payment is initiated using Samsung Pay, the phone will send the token and a cryptogram, or a small piece of code, to the card reader. The cryptogram itself is generated using a combination of the token, the phone’s digital security key, and a random code that is transmitted by the card reader. It is only valid for a short period of time (a few minutes) and becomes invalid immediately after it is used. The token and the cryptogram are sent to the card processor together, which then decrypts the information and sends it to the credit card network for authorization. The unique thing about Samsung Pay is that it can also make use of Near Field Communication in certain circumstances. NFC is a method of wireless data transfer that detects and then enables technology in close proximity to communicate without the need for an internet connection. However, not all card readers support NFC. For a payment to be eligible for use with NFC, the card reader must also be NFC-enabled, and the retailer must have adopted its use. By supporting both methods of payment, Samsung Pay becomes a versatile application. Because most card readers use MST, Samsung Pay can be used in almost every store and only requires a software download as opposed to installing additional hardware. In the situations where NFC is available, the customer can enjoy the benefits of a more seamless and less confusing payment process.

2. Getting Started with Samsung Pay

Beginning the process of setting up Samsung Pay on your device will first require that you launch the app. This can be done by navigating through your list of apps and locating the Samsung Pay icon, which resembles a white credit card on a blue background. Additionally, should you be setting up Samsung Pay for the first time on a Galaxy S8 or Galaxy S8+, you will also have the option to open the app from a shortcut by pressing and holding the app icon on your home screen. Once you have the app open, a number of introductory slides will provide an overview of the service and its benefits. After reviewing and pressing the “Start” button on the final slide, the app will then prompt you to sign into your Samsung Account in order to begin the setup process. For this step your device will require an internet connection, in order to complete the verification process and to be able to access your Samsung Account details. Make sure to confirm that your internet connection is available and press the “Sign In” button to continue.

2.1 Setting up Samsung Pay on your device

Log into the Samsung Pay app with your Samsung account details. You will be prompted to secure the app with a six-digit PIN for safety. Samsung Pay will also prompt you to set up the iris scanner or fingerprint scanner. You can use either or both. After setting up the account, you are now ready to add your credit card – or should I say, “loyalty” cards as well. You will be prompted by the app to take a photo of your card. This allows Samsung Pay to pick out the detailed numbers on the card without you having to type it out. After scanning, key in your signature where appropriate. After which, you will be prompted to key in the three-digit CVC code at the back of your card. Choose your verification method of either email or phone number, enter the relevant details with the code sent, and you are all set.

2.2 Adding payment methods to Samsung Pay

When you first open Samsung Pay, before adding any payment method, you will see a welcome screen with a brief overview of some of the main features of the app. That will be the screen that we will take you to the process of adding the payment methods. In the “Home” screen, which is the screen that you will be taken to as default each time you open up the app, click on “Credit/Debit” or “Add” at the top right. Initially, the camera held over the card will be activated. You can download your information with the first option “Enter Card manually”. This is where you will type in your data into the boxes and then click “Next” at the top right. When the card has been added successfully, there will be a message at the bottom of the screen to confirm it. You also have the option to set your new card as default in Samsung Pay. To do this, tick the box “Set as default card” when the message pops up, or go to “Home”, click on the card, hold and drag it to the left area of the screen for the default option. If you have chosen the first option to make payment by authenticating with fingerprint, in “Settings” which is located at the top left in the “Home” screen, click on “Use favorite cards”, and then you will see the “Favorite cards” to choose your default card. By holding the card at the favorite payment, you can set this card as default or remove from favorite. Please use multiple security methods for safety. Also, for different accessories such as the smartwatch, you may have to add your payment methods again to Samsung Pay. Every device added to the Samsung Pay will have a specific device card number for security.

2.3 Understanding security features in Samsung Pay

Security is a vital aspect of Samsung Pay, just as it is in any payment method. Security in Samsung Pay is implemented through tokenization. Tokenization is a method of protecting your card information by replacing your card’s primary account number with a different number, called a token. Tokenization allows continuous transactions, but the tokens generated are usable only in the “token domain”, that is, for a singular transaction between the merchant and the client. The use of unique tokens for every transaction means that your card’s primary account number is never used, and this protects your financial information. Additionally, your fingerprint is used to authenticate you whenever you pay using Samsung Pay. This means that nobody can access your card information to make a purchase, unless they have a note of your card’s security code and your fingerprint. The process of using the fingerprint sensor in a mobile device to confirm a user’s identity is commonly known as biometric fingerprint authentication. Samsung Knox is another important aspect of security in Samsung Pay. Samsung Knox is a multi-layered security platform developed by Samsung to provide integrity of the device at the hardware and the Android operating system level. It uses a system of timed Attestation and Provenance (or path) to confirm that no modifications have been made to the system. As a result, the Knox platform ensures that the device has not been compromised by a firmware attack or the like, and this helps to protect payment processes carried out using Samsung Pay.

2.4 Managing your Samsung Pay account

When it comes to managing your Samsung Pay account, there is a wealth of features and options. As with anything, it is important to keep your personal information and mobile payments secured, and Samsung Pay makes it easy for you to do this. One of the key features of your account is the ability to remotely lock or delete your card in the event that it is lost or stolen, or if you delete Samsung Pay from your device. This is a pretty neat feature that lets you stay in control of your cards and payments, as well as providing that added peace of mind knowing that if you lose your phone or your cards, they are protected with Samsung Pay. It is worth noting that Samsung Pay doesn’t store or even share any of your personal payment information, so you don’t have to worry about it being used for anything other than your secure transactions. Also, when you initially scan and add your card details, these are sent to your payment network and bank in an encrypted format. Instead of your actual card numbers being passed, digital ‘token’ numbers are used for each authorization, and this is what is actually stored on your device. This means that should anything untoward happen, your personal data and number are kept completely safe, so you can use Samsung Pay day to day without any concerns.

3. Using Samsung Pay for Payments

Another installment of my Samsung Pay series, and today I will be discussing what I find to be the most useful function of Samsung Pay: using it to make payments. One of the main reasons that I absolutely adore Samsung Pay is because I am no longer restricted to “using the credit card’s payment terminals with proprietary contactless payment apps specific to the card types I would like to use.” Instead, with Samsung Pay, I can use my phone to tap and pay anywhere that accepts contactless payment. Not only that, but the whole process for making an in-store payment with Samsung Pay is incredibly easy and straightforward. First, all you need to do is swipe up on your phone screen to select your preferred payment card, and then authenticate the payment with either your fingerprint, iris scanner, or Samsung Pay PIN. Then, simply hover your phone screen over the payment terminal, and, just like magic, the card reader will detect the payment and recognize your payment card. There are no annoying codes or swiping actions, and in most cases, you will not even have to wake your phone or unlock it. Also, the magnetic secure transmission (MST) feature in Samsung Pay allows you to go to the card control screen, which is just two taps from the app home page. Then, all you have to do is tap on your preferred card to activate the payment card and update the display on your phone. DFS, which is the card network service mainframe for our current incarnations of the x-ply involving personal identification number (PIN), recognized general ‘credit’ and ‘debit’ forms. Using the latest near field communication, a technology that allows paying by touching a mobile device on a compatible reader and has proven popularity worldwide when compared to other mobile payments, it means that you are transacting with a secure form of payment because Samsung Pay does not transmit the real PIN for ‘paper’ or ‘plastic’ cards in payment terminals; rather, a unique, one-time code, a cryptography-based dynamic PIN, is used. So your actual card number is never shared with the payment terminal or the merchant – all the receiving parties will get is the identity of the financial institution and the tokenized number for card transaction, and it would be a lengthy, convoluted process for exchanges to trace back and find out your original card number. This makes Samsung Pay the safer way to pay for purchases every day.

3.1 Making in-store payments with Samsung Pay

Samsung Pay provides a friendly user interface, requiring only a few easy steps to make an in-store payment: swipe up to choose a card, authenticate by fingerprint or pin, and tap to pay. When the Samsung Pay app is first launched, preferred payment cards can be added by selecting ‘Credit/Debit’ and then tapping the ‘Add’ icon in the top right-hand corner. Cards can be added by using the phone camera to capture the card information or by entering the card details manually. If entering the card details manually, the user will need to input the card number, expiration date, security code, and the cardholder’s name. Once the preferred payment card is registered with Samsung Pay, simply swipe up from the home button on the display screen to select a registered card. The choice of card will be displayed on the top edge of the screen. Authenticate by using the fingerprint scanner or, if this option is not enabled, authentication will be by pin entry. The phone should then be placed against the contactless payment terminal – the terminal screen will show when the payment is being processed and when it’s complete. A blue tick and a payment confirmation will appear on the phone screen when the payment has been successful. With the added peace of mind of Samsung’s ‘Defence-grade security’, together with the features of paying without Wi-Fi or mobile connection by option of MST, it’s no wonder that Samsung Pay is widely accepted. In today’s society, with the rise of cybersecurity breaches and the answer to solving the payment ‘hassle’, it is safe to say that Samsung Pay is in some way a development towards a cashless future.

3.2 Making online payments with Samsung Pay

Now, almost everything can be bought on the internet. Multiple different digital platforms and online shopping websites exist to make the internet shopping experience better for consumers. One common problem for digital consumers is making online payments. For years, the standard and usually the only way to pay for things on the internet has been to type in long credit or debit card numbers. The numbers are then followed by the card’s expiration date and the cardholder’s billing address before the payment can be completed. For multiple devices, this means having to get up and go get the wallet, purse or whatever type of digital payment methods. But with Samsung Pay, making online payments has been taken to a new level. When buying something on the web, Samsung Pay can be used as the digital wallet for payment just like in a store. First, find what you want to buy and proceed to the checkout. When it comes to the payment options, simply select the Samsung Pay button. Then, the designated card will pop up. To use a different card for the payment, just swipe left or right to select another card in the digital wallet. After selecting the right card, simply place a finger on the Home button and use the biometric verification method to authorize the payment. This is normally done through a fingerprint. Now, the user should see a payment confirmation and the purchase has been completed. As well as providing a faster and more secure payment option, Samsung Pay also ensures that the real card details are kept private. This is because with Samsung Pay, actual card numbers are neither stored on the device nor shared with the merchant during the payment. Instead, the transactions are completed using the digital card number. Also, since Samsung Pay uses the NFC technology for payment, the user gets the benefit of tokenization which adds another layer of security.

3.3 Using Samsung Pay for transit and loyalty programs

Samsung Pay not only allows you to make charges, but also use your telephones with respect to a travel card to pay for tolls and transports. Samsung Pay is recognized where you see the contactless picture. Samsung Pay in like manner has a reward card feature which empowers a customer to store all their customer offers and dependability cards in a solitary spot, subsequently promising you don’t leave behind any centers. You can use 36 unique faithfulness cards with Samsung Pay. To make portions using a travel card, swipe upwards from the base of the screen and pursue the affirmation using your iris, print or PIN. Select the travel card you have to use and recognize the trade accumulate on screen. This component is splendid for the present time when you have to use the vehicle, yet don’t have any of your wallets about. Additionally, Samsung Pay fills in as a replacement for your Oyster card, so you can basically tap in and tap out without the issue of opening your wallet. On the ‘Cards’ portion in the application, select ‘Add’ and a short time later ‘Inclination/Membership cards’. The camera will by then open the decision to physically enter the card nuances or to yield the card. Once the card nuances are confirmed, give the card a name. This will be the name that appears on the screen when you select a card to make portions. After portion plans are made and another card is set to the default decision, an autonomous trade can be kept up for prepaid card trades. For example, you have the elective set for Oyster plans so when you change your default card, the trade stills appear as ‘Oyster’ on the screen and the portion is kept in touch with the Oyster card, notwithstanding the way that you would then have the option to pick a substitute card for the trade.

3.4 Sending and receiving money with Samsung Pay

Sending and receiving money with Samsung Pay is easy and takes just a few moments to complete a transaction. This feature is part of Samsung Pay Cash – a virtual account provided by a partnership with Mastercard and Netspend. This feature allows you to quickly send or receive money from friends and family in messages. The money that you send is stored in the recipient’s Samsung Pay Cash account. Once they set up the service, they can transfer money from the virtual account to their bank if they choose. To start using this feature, open Samsung Pay on your phone and tap three times on the “Send” icon. Select “+ Add” to add a recipient and type the person’s name and email or phone number. You can either select the contact from your phone’s contact list or tap “Create group.” If you select a contact, they will receive a text message or email, depending on the information you submit and they can claim the money once they follow the instructions. If you create a group, you can include different contacts and assign a payment amount to each person. Also, you can transfer funds to and from your bank account within the Samsung Pay application. After tapping on “Money transfer” and selecting the option to “Transfer out,” follow the on-screen instructions to choose the desired amount and the recipient of the funds. The funds will move from the Samsung Pay Cash account to your bank account and should typically be available either within minutes or within a business day, depending on the associated currency and your bank’s policy.

4. Exploring Advanced Features of Samsung Pay

What’s even more exciting about Samsung Pay is that the app and its features are not limited to smartphones and tablets. You can also set up Samsung Pay on your Galaxy Watch, Gear S3, and Gear S2. The only requirement is that the device supports near field communication (NFC) – the same technology that enables contactless payments on your devices. Samsung Pay currently supports features on three wearables: the Gear S3, the Gear Sport, and the Galaxy Watch. The set up process on each wearable is largely similar to the setup on a smartphone, involving the use of the Galaxy Wearable app. Once Samsung Pay is installed and on a wearable, you can place the wearable near any terminal that accepts cards with magnetic stripes and complete a transaction. In other terms, it is not mandatory that the payee supports NFC payments. To open Samsung Pay on a Gear S3 or Gear Sport, simply hold the watch’s back key and the app will show up. From here, swipe left or right on the screen to view the different cards you’ve added. Select the desired card by tapping on it, and authenticate with your PIN or iris scan if prompted.

4.1 Using Samsung Pay on wearables and other devices

In order to use Samsung Pay on either wearables or other devices, such as tablets or other smartphones, the device being used initially to set up Samsung Pay has to be a Galaxy smartphone, and the user must have a Samsung account. This is so the Samsung Pay application and relevant data can be quickly downloaded and installed onto the device, and also to allow for additional security and authorization measures. Once Samsung Pay is set up and a card is registered onto the smartphone, the application will automatically prompt the set-up for a Samsung Gear and when using other devices will provide a link to the relevant application in that device’s respective store. For example, in order to use a Gear S3, the Gear application (which allows connection and communication between a Galaxy smartphone and a Samsung Gear) has to be downloaded from the Google Play Store or the Apple App Store and the Gear S3 will have to be paired to the Galaxy smartphone. The Gear application interface will provide a simple guide on how to install and set up Samsung Pay on the Gear, and once it is all installed, the application makes use of near-field communication (NFC) and a wireless ‘magnetic secure transmission’ connection, meaning the Gear will be compatible with most contactless payment terminals, including those used for Oyster cards on London public transport. On all wearable or other device transactions, a user will need to type in a pin onto the device to authorize each and every purchase made using the application.

4.2 Exploring Samsung Pay’s rewards and offers

Samsung Pay has partnered with several reward organizations, including Honey and Rakuten, to offer incentives to users who use these digital systems to earn rewards with purchases. Honey is a browser extension for getting online promo codes, and Rakuten is for physical in-store purchases. By including these options that would not be available to Apple Pay, Samsung Pay shows that it is also capable of adapting to the diverse needs of different users. Depending on one’s bank and card type, additional perks may be available to certain users as well. For instance, Citi Bank members have access to different savings whenever they use their cards when shopping or just taking out cash in general. In my experience, however, the most universally accessible and attractive rewards have to be the Samsung Rewards, which are a standard hallmark of the app and the most diverse in terms of the content they activate. Samsung Rewards are a points-based system which rack up the more a user spends and can be exchanged for various rewards like gift cards to selected vendors or even coupons which can be spent in the Galaxy App Store. There is a varied selection of vouchers that can be purchased through Santander, which are actually deducted on the amount itself worth the service and the type of card that is registered with Samsung Pay. This means the deals are not general and more likely than not will apply to something a user actually wants to purchase. All these varying rewards, all accessible through the use of Samsung Pay, considerably sweeten the experiences of benefit by using the digital wallet and give some security to the slightly daunting jump to mobile payment technology.

4.3 Troubleshooting common issues with Samsung Pay

If you’re experiencing issues with Samsung Pay, one of the best first steps is to clear the app cache. If this does not resolve the issue, the next step would be to uninstall the app and reinstall it (although, if you’re experiencing issues with Samsung Pay, you might not be able to remove it via the standard method of tapping and holding on the app icon). To do this, you need to go to the “Settings” app and tap the “Apps” option. From “Apps”, you should then find and tap the “Samsung Pay” app, and then tap the “Force stop” button. When “Force stop” has been completed, tap the “Storage” button. Then tap the “Clear Cache” button, followed by the “Clear Data” button. Now you can uninstall the app – to do this, tap the back arrow button on the top-left of the “Samsung Pay” screen to go back to the main “Apps” screen. From here, tap the “Uninstall” button, and once the process has been completed, tap the “OK” button.