Samsung Pay’s Launch in China Is Another Challenge for Apple



Samsung Pay service is a threat to Apple

In the previous part of this series, we discussed how Apple (AAPL) will face stiff competition from Alibaba (BABA) and Tencent following the launch of its Apple Pay service in China.

In another announcement, South Korean (EWY) company Samsung (SSNLF) also announced that it had struck a partnership deal with China UnionPay for its Samsung Pay service. Samsung had previously launched its payment service in the United States and South Korea.

The reason Samsung could pose a big challenge to Apple in the online payments space is that Samsung is the leading player in the smartphone market. People tend to use services that are tangential to the smartphones they use.

According to a report from the International Data Corporation, and as the chart below shows, Samsung had an approximate 24% share of the global smartphone market as of 3Q15. Apple was ranked second in this market, with a share of 13.5%.

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Walmart Pay service also pose a challenge to Apple

Another challenge for Apple Pay will come from Walmart (WMT), which recently launched its Walmart Pay service. The dynamics of Walmart Pay are different from Apple Pay, as Walmart Pay depends on quick response codes to complete transactions, while Apple relies on near-field communication technology.

Since Walmart is the biggest retailer in the world, its customers are likely to prefer its Walmart Pay service.


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