Visa and Samsung have signed an alliance agreement to enable Samsung mobile devices with Visa payment technology and to partner with financial institutions to accelerate the availability of mobile payment solutions globally.
Under the agreement, financial institutions that are planning to launch mobile payment programs will be able to use the Visa Mobile Provisioning Service to download payment account information to NFC-enabled Samsung devices. In addition, Samsung has agreed to load the Visa payWave applet onto its mobile devices featuring NFC technology.
Visa payWave is Visa's mobile payment applet that enables consumers to make "wave and pay" contactless payments using mobile devices.
FOSTER CITY, Calif.-(BUSINESS WIRE)-Feb. 25, 2013- Visa and Samsung today announced a global alliance that combines Visa's expertise in payments with Samsung's leadership in mobile device technology - an alliance that has the potential to significantly accelerate the availability of mobile payments globally.
According to the agreement, financial institutions that are planning to launch mobile payment programs will be able to use the Visa Mobile Provisioning Service1 to securely download payment account information to NFC-enabled Samsung devices. In addition, Samsung has agreed to load the Visa payWave applet onto its mobile devices featuring NFC technology. Visa payWave is Visa's mobile payment applet that enables consumers to make "wave and pay" contactless payments using mobile devices.
"Samsung devices enabled with Visa payment functionality will no doubt be a powerful product offering - especially in markets where paying with a mobile device is becoming commonplace," said Jim McCarthy, global head of product, Visa Inc. "However, the key to making mobile payments broadly available all over the world is to offer financial institutions a secure way to provision millions of smartphones with payment account information - and that is exactly what Visa and Samsung are ready to deliver."
"Samsung has been a pioneer in NFC devices and is again leading the way in enabling NFC-based mobile payments. The partnership with Visa represents a step towards a global mobile payment platform," said Dr. Won-Pyo Hong, President and Head of Media Solution Center, Samsung Electronics. "We believe that we have a strong value proposition for financial institutions that will ultimately allow consumer choice in NFC payments."
Near Field Communication (NFC) technology is the global communication standard that enables mobile devices to securely communicate with a payment terminal. ABI Research forecasts that a total of 1.95 billion NFC-enabled devices will ship in 20172. The Visa Samsung global alliance is a first of its kind between a leading NFC handset manufacturer and payment network that is paving the way for the implementation of large scale mobile payment programs. The initial areas of engagement that the two companies have agreed to include:
Global Strategic Alliance
Visa and Samsung have agreed to work together to enable the next generation of Samsung mobile devices with Visa payment technology, and to partner with financial institutions to accelerate the availability of mobile payment solutions globally.
Samsung to Connect to Visa's Mobile Provisioning Service
In order to enable financial institutions to launch large scale mobile (NFC) payment programs, Samsung will offer banks the ability to load payment account information over-the-air to a secure chip embedded in Samsung devices, using Visa's Mobile Provisioning Service3 which is linked to Samsung KMS (Key Management System) - a service that creates secure data storage domains for issuers.
Samsung Awarded Global Visa payWave License
The Visa payWave mobile applet will be preloaded onto selected next-generation Samsung mobile devices featuring NFC technology and an embedded secure element. Off the shelf, these devices are ready to be personalized with Visa payment account information - a simple step that consumers will be able to initiate using a mobile payment application provided by their financial institution.
At Mobile World Congress 2013 in Barcelona, February 25-28, Visa will demonstrate Visa payWave for mobile and its Mobile Provisioning Service that can be used by financial institutions to securely load payment account information to NFC-enabled Samsung mobile devices. For more information, visit Visa at Mobile World Congress, Hall 6, Stand 6E40.
About Visa Inc.
Visa is a global payments technology company that connects consumers, businesses, financial institutions and governments in more than 200 countries and territories to fast, secure and reliable electronic payments. We operate one of the world's most advanced processing networks-VisaNet-that is capable of handling more than 24,000 transaction messages a second, with fraud protection for consumers and assured payment for merchants. Visa is not a bank and does not issue cards, extend credit or set rates and fees for consumers. Visa's innovations, however, enable its financial institution customers to offer consumers more choices: pay now with debit, ahead of time with prepaid or later with credit products. For more information, visit corporate.visa.com.
About Visa Europe
Visa Europe is a payments technology business owned and operated by member banks and other payment service providers from 36 countries across Europe. Visa Europe works at the forefront of technology to create the services and infrastructure which enable millions of European consumers, businesses and governments to make electronic payments. Its members are responsible for issuing cards, signing up retailers and deciding cardholder and retailer fees. As a dedicated European payment system Visa Europe is able to respond quickly to the specific market needs of European banks and their customers - cardholders and retailers - and to meet the European Commission's objective to create a true internal market for payments. For more information, please visit www.visaeurope.com
About Samsung Electronics Co., Ltd.
Samsung Electronics Co., Ltd. is a global leader in technology, opening new possibilities for people everywhere. Through relentless innovation and discovery, we are transforming the worlds of televisions, smartphones, personal computers, printers, cameras, home appliances, LTE systems, medical devices, semiconductors and LED solutions. We employ 236,000 people across 79 countries with annual sales exceeding KRW 201 trillion. To discover more, please visit www.samsung.com.
1 Visa's Mobile Provisioning Services are not available in all territories
2 Source: ABI Research, November 21, 2012 https://www.abiresearch.com/press/nfc-will-come-out-of-the-trial-phase-in-2013-as-28
3 Visa's Mobile Provisioning Services are not available in all territories
Source: Visa Inc.
According to DRAMeXchange, a division of global research firm TrendForce, in the first quarter of 2013 smartphone shipments increased steadily worldwide, with total shipments reaching 216.4 million units, 9.4% Quarter on Quarter growth. Since the beginning of 2012, smartphone shipment figures have been up every quarter despite seasonality, indication the electronic device is here to stay.
Looking at first-tier manufacturers' shipment volumes, Samsung continues to take the lead in the first quarter as the maker uses its vertically integrated supply chain, global marketing, and various sales channels to its advantage. Samsung's smartphones series is expected to see 65M units shipped this quarter, which accounts for 30% of the global market.
As for Apple, the iPhone 5 has been unable to satisfy consumers' desire for innovation, and shipments were unsatisfactory as Android manufacturers have stepped up to the plate. The Cupertino company shipped a mere 37.5 million units in the first quarter, giving them 17.3% market share, a decrease of 1.2% from the previous quarter. Currently, circumstances surrounding the announcement of Apple's new device are unclear, while Samsung, HTC, Sony, and other global corporations are planning product unveilings for the second quarter, which will likely lead to another dip in Apple's shipments.
Nokia and HTC are other companies who have found themselves having smaller shares in the beginning of this year, with Nokia down 0.9% and HTC down 0.4%. Sony and Lenovo seem to be among the few companies that have actually registered a growth. Sony, which recently launched its Xperia Z smartphone, has climbed all the way from 3.5% to... 3.8%, while Lenovo currently controls 3.9% of the market, up from 3.3% in 2012.
Samsung released an official statement explaining the global delay in the delivery of the Samsung Galaxy S 4. Some carriers are even offering free credit for those who will wait for the device even further in May. According to the Company, this happened because of "overwhelming global demand" for the said smartphone.
official statement released by Samsung:
Due to overwhelming global demand of Galaxy S4, the initial supply may be limited. We expect to fulfill inventory to meet demands in the coming weeks.
Pre-order for the Galaxy S 4 was also stellar where most if not all of the carriers sold out their stocks even before the phone is released and just recently, Samsung admitted to the limited production of the Exynos processor, which is possibly why the total number of supposed Galaxy S 4 fell short.
T-Mobile, Sprint, and Verizon have all released statements about the delay on the release of the phone. Pre-order customers are naturally not happy about this but if there's someone who's rejoicing at the S 4 delay, it's HTC One. It has recently shipped 300K units last month and this gives it ample time to capture more of the market before Samsung Galaxy S 4 takes it all away.