Samsung is taking its customers to the next logical phase of paperless payments with the integration of more cryptocurrencies to the 10-million-user strong Samsung Pay.
The South Korean tech giant made headlines when it revealed that the upcoming Samsung Galaxy S10 series will support cryptocurrencies through its Samsung Blockchain Wallet. Users can store their Bitcoins, Ethereum, and Cosmo Coins via the system. Funds are protected using the proprietary Samsung Knox, which keeps a private key for secure storage of digital assets.
Samsung Pay To Add Cryptocurrencies
Now, Samsung is hinting at the possibility of integrating more cryptocurrencies to its official mobile payment service Samsung Pay. In a report by South Korean news website Donga, Samsung is said to be mulling over the move to help attract more users.
"Samsung Pay has recently extended the transaction period for overseas users and integrated an international payment processing service, aggressively targeting the global financial services market," the report said via CCN.
"At this phase of development, if a cryptocurrency wallet is added to Samsung Pay, the application will be strengthened as a complete fintech platform. Currently, the Samsung Blockchain Wallet is said to be supporting Ethereum but more cryptocurrencies are expected to be integrated in the near-term."
Samsung Pay currently has 10 million active users worldwide. Experts believe adding more digital currencies will make the service more enticing to a younger audience, particularly millennials who are more likely to use digital assets than other age groups.
One Korean industry analyst said the move may even lead to Samsung's blockchain wallet becoming more popular in the country.
Samsung Pay Vs. Other Mobile Payment Apps
Samsung has helped strengthen Samsung Pay's position through smart acquisitions and product launches. In 2015, the tech company acquired crowdfunded startup LoopPay for$250 million, making the service more competitive to other mobile payment apps such as KakaoPay and Apple Pay.
The acquisition of LoopPay gave Samsung Pay users the ability to make digital payments by hovering their devices over Point-of-Sale (PoS) terminals. This quick and easy payment method helped draw more people to the service, bringing in 6.6 million new users between 2017 and 2018.
Bring In Bitcoin
Samsung is looking to get a further boost to Samsung Pay by introducing Bitcoin to the service. The company might be taking a page from Square Cash, another digital payment app that integrated the cryptocurrency and experienced a 516 percent growth in 2017.
Bitcoin was integral in helping Square Cash establish an initial user base for the service, allowing the company to hit its stride over the following months.
So far, Samsung Pay has accumulated $18 billion in transaction volume. If Samsung were to integrate Bitcoin to the service, it could help inspire more merchants to adopt cryptocurrencies. However, it might take a while before mainstream establishments would fully accept cryptos in transactions.
As the Donga report noted, Samsung may be able to help improve the visibility and accessibility digital money through its blockchain wallet, but it might not be enough for cafes, restaurants and department stores to consider its widespread use.