[Exclusive] Card Memberships, Mileages, And On-Site Discounts Will All Be Possible For Samsung Pay By End Of This Year

Memberships, mileages, and on-site discount services that were only possible for regular plastic cards will also be possible for Samsung Pay by end of this year.

Because foreign payments will be possible as well, it seems that Samsung Pay will quickly replace regular plastic cards that used to grasp trading markets for many years. According to financial industries and IT industries, Samsung Electronics had discussed with card companies about totally restructuring Samsung Pay’s security certification method and started on restructuring its system. 

Although Samsung Pay has a versatility of being able to be used by current payment terminals due to its MST (Magnetic Security Transmission) method, mileage savings, membership services, and on-site discounts that were provided by regular cards were not possible due to its security certification problem.
It is having a security certification problem because Samsung Pay’s security is using OTC (One Time Card) method that is being used by mobile app card businesses. OTC certification is a token security method where card’s virtual numbers change every minute and 30 seconds during payments.
Even if stores are trying to give benefits such as mileage savings and on-site discounts, number mapping is not possible since card numbers change every time during payments. Also it is not possible to identify if an actual customer has done such transaction with a certain card number. OTC method, which is an app card transaction method, is a certification technology that strengthens security so that extortion and others do not occur. There have been times recently when customers are pointing out inconvenience about Samsung Pay because approval, discounts, on-site services do not work for Samsung Pay at places such as gas stations, hotels and others while they work for regular plastic transaction benefits.

Samsung Electronics and card companies decided not to use OTC method and introduce ‘Fixed Token’ method that uses fixed numbers. If this method is applied, actual transactions can be certified just like regular plastic cards since virtual token numbers do not change. It is changing its system by end of this year, and its new fixed token method will be able to receive same benefits as a normal card would at gas stations, hotels, and others.
South Korean cards that are linked to Samsung Pay can be used in foreign countries. A reason why Samsung Pay could not be used at foreign stores is because OTC security certification is a South Korean standard, which cannot be used at global markets. On the other hand, fixed token method allows payment linkage just like a method that Visa and Master Card chose. 

“A ripple effect is expected by making mileage and membership discount service that were Samsung Pay’s biggest obstacles possible. If even foreign payment is linked, Samsung Pay will form a situation where it is competing against plastic cards instead of its competitors’ pay platforms.” said a person from a partner company of Samsung Pay.
Hana Card, which is a number 1 in mobile card based on USIM, is also joining Samsung Pay’s camp. Samsung Pay, which was limited in app card camp, attracts Hana Card that is forming another competition structure to its camp, and it seems that versatility of stores and accommodation of single mobile card will be possible.
Samsung Electronics is pushing for system linkage process to be done by end of this year and it will be able to solve most of issues of lack of USIM mobile cards’ uses with Samsung’s MST if Hana Card joins Samsung Pay’s camp. Vice-President Lee In Jong of Samsung Electronics also announced that Samsung Electronics is currently restructuring its system. “On-site discount and point saving that were considered as Samsung Pay’s biggest weaknesses were not possible with OTC token method due to unrecognition of virtual numbers. Most of these problems will be solved by November if we change our system.” said Vice-President Lee.
Staff Reporter Gil, Jaeshik | [email protected]