Samsung pay recently tied up with Sofi to launch a debit card in the US. It sounds like a retrograde move when the payments world is going digital. Samsung Pay (~11M users) is lagging behind Apple Pay (~30M users) in the US (per Business Insider). Why is this move happening now?
Given US consumers favor debit card usage, it makes sense to widen the target market. Credit cards require checks which fewer customers will clear given the #COVID-19 financial stress.
Debit cards allow more access to more customers. A quarter of US adults are unbanked /underbanked, and a debit card could be the way to include them in the financial system.
This debit card can be offered to SoFi's student customer base. Students may adopt an entry-level financial product like this card if personal finance management tools supplement it.
Another reason is competition- Venmo and Square have their card products. Google Pay is reportedly working on its card offering.
In my opinion, the one area where Samsung Pay scores above Apple Pay is that of broader acceptance. Merchants do not need to have an NFC capable POS because of Samsung Pay's magnetic secure technology. The Samsung Pay wallet simulates a card swipe on merchant POS with its smart tech!
