Samsung Pay Reviews 'Charging Card Companies Fees and Supporting Joint Marketing'

Samsung Electronics is considering a plan to support various joint marketing efforts in exchange for receiving fees from card companies for its simple payment service, 'Samsung Pay.'

According to industry sources on the 27th, Samsung Electronics is reportedly reviewing a plan to charge card companies a fee per transaction for Samsung Pay, similar to Apple Pay. However, instead of unilaterally collecting fees, it appears that discussions are underway to propose a method where a portion of the fees is allocated to joint marketing support based on each company's contribution. A representative from a major card company explained, "Although nothing has been decided yet and no official documents have been sent directly, we have heard that this approach is being considered in light of the recent difficulties faced by card companies."

International payment technology companies such as Visa and Mastercard also conduct promotional activities together with card companies in exchange for fees for using overseas payment networks and brand usage. Samsung Pay's win-win plan is expected to follow a similar format.

Except for technology usage fees, Samsung Pay has been virtually free, and the specific fee rate has not yet been discussed. There is speculation that it will charge a fee of around 0.15% per transaction, similar to Apple Pay. Since its launch in 2015, the cumulative transaction amount reached 219 trillion won as of February this year, leading the card industry to anticipate an annual fee burden of several hundred billion won or more. However, there is also speculation that Samsung Electronics will apply a 'sliding scale' method, where the fee rate decreases as the card company's market share or the number of card transactions increases.

If Samsung Pay starts charging fees, the profitability of card companies will inevitably deteriorate in some way, which is expected to lead to a reduction in various discount benefits previously offered to consumers. An industry insider said, "There is a feeling that what was inevitable has come," adding, "Even if Samsung Electronics presents a win-win plan, it is clear that the burden will increase compared to the past, so more thorough cost management will be unavoidable."

This content was produced with the assistance of AI translation services.