How would you like to be able to use your phone as your credit card? What at one time seemed only like a futuristic dream, will soon be a reality for Samsung users. It has now been announced that Visa and Samsung will be partnering to allow users to make mobile payments. Visa’s NFC payment system will now be built into all future Samsung smartphones. This is not only a big step for Visa and Samsung, but it also lends to the viability and credibility of NFC payments.
Essentially the way that it works, is that Visa will provide the secure element that will allow payment processors to communicate with banks. As such, multiple payment processors and banks will be able to use this element within Samsung phones, allowing for a full variety of apps and wallets to be developed for the various processors and banks. In many ways, Visa has won this battle for control over NFC payments. Moreover, it is a huge setback for Google Wallet. Google has had difficulty getting carriers to adopt its NFC. Samsung’s decision to go with Visa will further complicate Google’s aspirations to put their payment system into mobile users’ hands.
Visa is already a major player in the mobile payments market. In fact, Visa already has agreements with many mobile payment systems. Moreover, they work with Isis. Isis is a mobile payment consortium that has the backing of multiple U.S. carriers. Carriers that are a part of Isis include Verizon Wireless, AT&T and T-Mobile. By partnering with Samsung, the global leader in smartphones, the two companies are perhaps uniquely poised to offer users mobile payments. Anyone that has the soon to be released Samsung Galaxy S IV will be able to use NFC payments. Therefore, what is great news for Samsung and Visa, may also be great news for the consumer.
[Image via cnmeonline]