You don’t need to carry your credit card with you in order to make payments. If you have a newer iPhone model with a Touch ID sensor supporting Apple Pay, or an older iPhone which is coupled with an Apple Watch which has an NFC chip, then your life has been improved, because you can make contactless payments in stores with NFC payment terminals. Apple Pay has been introduced last year, in September, while Samsung has launched its service along with its Galaxy S6 and Galaxy S6 Edge, but soon, the LG customers will make payments on their phones.
Tokenization And Authentication
Both Samsung Pay and Apple Pay use a tokenization process allowing the credit card or debit card associated with your phone, to keep the card number private. The merchant’s terminal will receive only a digital ID aka token, which will make sure that during the transfer, your card details won’t be hijacked. Both Apple and Samsung are using the Mobile Digital Enablement System (MDES) built by MasterCard for the tokenization system.
When the users want to make payments, they will use their fingerprints to confirm identification. Only this way their phones will know that they’re the real owners and will allow the transaction.
Both manufacturers added NFC chips, but Samsung has used a system called Magnetic Secure Transmission which facilitates the transfer of data from debit cards via magnetic stripe swipes. So, the Samsung devices supporting Samsung Pay come with a special wire which is hidden inside them and which allows them to send a MTS transmission to a magnetic card reader. The users need to hold their devices near the magnetic card reader and the data will be transferred through the MTS wire.
Supported Credit, Debit Cards and Banks
No matter if you have a Visa, MasterCard or American Express card, you can use it to make payments using Apple Pay or Samsung Pay. Also, these services are supported by over 90 banks, but Apple Pay is supported by both big and small banks, while Samsung Pay can be used with bigger banks such as Chase and Bank of America.
Samsung Pay has a bigger advantage, because it supports MTS and many merchants have compatible terminals. Currently, Apple Pay is supported by 200,000 stores in the US.