Samsung Debuts 1st US Credit Card in Answer to Apple
Electronics giant Samsung has teamed with Barclays to roll out its first credit card.
The Samsung Galaxy Card will run on Visa’s network, with applications set to open Wednesday (July 22), according to a company announcement. Available in both virtual and physical card formats, the new offering is designed to integrate with Samsung’s digital wallet.
“Consumers expect payments to be embedded into the digital experiences they use every day,” Kirk Stuart, senior vice president and head of North America enablers, merchants and FinTechs at Visa, said in a news release.
“By bringing together Samsung’s innovation, Barclays’ co-brand capabilities, and Visa’s trusted network, Samsung Galaxy Card delivers a connected experience that helps consumers earn rewards while providing the security and acceptance needed to support commerce wherever they choose to shop.”
The card places Samsung in closer competition with Apple Pay, with the iPhone maker offering its own card on the Mastercard network, issued by J.P. Morgan Chase.
A report on the launch by Reuters cites statistics from Sih Lee, executive vice president, head of North America FinTech business at Samsung, who said 70% of American households have one of the company’s devices, while nearly 30% have at least three.
“The relationship that we’re building with Barclays is a strategic and long-term relationship,” Lee said. “So while we don’t have everything all lined up today, we do have intention to collaborate and explore all avenues of different products and different capabilities that we can actually make available as it makes sense to our customers.”
Reuters notes this indicates Samsung’s plans to expand its financial service ambitions beyond credit cards.
And Doug Villone, head of cards and partnerships at Barclays US Consumer Bank, told the news outlet that the digital card was designed to offer a more seamless payments experience for users as they increasingly manage their financial lives via mobile device.
That’s in keeping with new research from PYMNTS Intelligence, which finds that digital wallet adoption is rising, especially among young people and consumers under financial strain.
“Their interest appears tied to features that extend beyond storing cards, including installment plans, real-time balance visibility and tools that help organize spending,” PYMNTS wrote last week. “In that sense, the digital wallet is becoming less like a virtual cardholder and more like a household financial dashboard.”
