As Samsung Pay is about to take 49% shares in Asian markets next year, it is predicted that it will emerge as major service in global Smartphone payment gateway market.
Hyundai Securities Co., Ltd. is predicting that Samsung Pay will quickly seize global markets starting from China and the U.S. and that its shares in Asian markets will reach 49%. This number forecasts that Samsung Electronics will become a global payment gateway service business.
Global market research company Gartner is estimating that size of global mobile payment markets that used to be worth $100 billion in 2011 will grow 7 times more by 2017 at $720 billion. It also estimated that number of payments will quickly grow from 11 billion in 2012 to 47 billion in 2015.
China’s UnionPay and Alibaba have helped Samsung Pay grow the most. Samsung Electronics made partnership with UnionPay that controls 73% of Asian markets and is planning to release Samsung Pay in China in 2016. Not only one can use Union Pay in China, but it can be used in 150 countries and at 26 million affiliated stores. 52% of cards that were issued last year in the whole world had UnionPay. As Samsung joins hands with UnionPay, it is expected that Samsung Pay’s influence will expand starting from China. Samsung also chose working together with Alibaba, which controls 75% of Chinese e-commerce markets, in marketing as one of the factors that has helped Samsung Pay grow. Increase of shares in Chinese e-commerce markets is expected if one joins hands with Alibaba.
Increase in number of Samsung Electronics’ Smartphone models that have Samsung Pay is also a positive factor.
This year Samsung Pay was only limited to 4 models: Galaxy S6, S6 Edge, S6 Edge Plus, and Galaxy Note 5. However Samsung Electronics is planning to apply Samsung Pay to inexpensive models too next year to quickly expand influence of Samsung Pay.
Hyundai Securities Co., Ltd. is estimating that 200 million Samsung Smartphones will have Samsung Pay next year considering the fact that Samsung Electronics put out more than 300 million phones this year. This number corresponds to 60% of Smartphones that will be produced by Samsung Electronics next year and it is a value that is 4 times higher than this year’s at 13%.
As Samsung Pay has become a successful service in South Korea, Samsung Electronics is planning to enter foreign markets next year. Number of members of Samsung Pay, which started on the 20th of August, surpassed 1 million in October and is predicted to surpass 2 million this month. Number of accumulated payments also surpassed 10 million.
Starting with the U.S. in September, Samsung Electronics is planning to enter foreign markets such as China, Europe and others in first half of 2016. It is expected that more of Samsung Electronics’ Smartphones will be sold as consumer spending in North American region, which is world’s biggest consumer market, tends to shift from cash and checks towards credit cards and online and mobile payments.
“Because Samsung Pay has quickly settled itself in South Korea, it is expected that it will expand towards Chinese and the U.S. markets.” said Kim Chul-young who is a researcher for Hyundai Securities Co., Ltd. “Cellphone payment service businesses and module businesses will also benefit from this.”
Staff Reporter Lee, Kyungmin | [email protected]
