The announcement of Samsung Pay, in direct competition with Apple Pay, is a signal that payments with mobile devices are growing up, writes ARTHUR GOLDSTUCK.
Once a year, Barcelona plays host to an event that signals the key shifts in mobile technology, setting the agenda for personal gadgets for the rest of the year. Mobile World Congress 2015, which took over the city for most of last week, pushed the boundaries just a little further than usual.
The most significant announcement of the week was not a device, however, but a new way of doing something as old as civilisation: making payments.
When Samsung unveiled its new Galaxy S6 and S6 Edge, it also declared the next phase in its war with Apple. Back in September, Apple had announced the iPhone 6 and 6 Plus, along with a payment system called Apple Pay. The similarity in names is no coincidence. Samsung wants to make it clear that, not only is it playing in the same space as Apple, but it is doing it better.
Apple Pay works through NFC, or near-field communication, which allows the sending of data from one device to another with a single tap. That data can include files, photos and payment or transactional information, if it has been set up in advance. As a result, a single tap, authenticated via the fingerprint sensor on the iPhone 6, can conclude a transaction at an NFC terminal in a retail outlet.
Samsung Pay goes a step further. While it also offers fingerprint verification and NFC, which is still in limited use in the retail world, it ups the ante with MST, which caters for the vast majority of retailers who still use magnetic stripe card readers.
MST, for magnetic secure transmission, allows a device to be placed alongside a card terminal and send a radio signal that mimics the interaction of the magnetic stripe on a card with the terminal. It instantly allows Samsung Pay to be compatible with any retailer in the world that accepts credit, debit or payment cards.
Samsung’s leapfrog over Apple was made possible by its acquisition, earlier this year, of a company called LoopPay, which describes itself as “the world’s first mobile wallet solution that allows consumers to pay with their mobile devices at most places and leave their wallets at home”.
The LoopPay solution, as it existed prior to last week’s announcement, consisted of a LoopPay App and a LoopPay device, which worked in tandem.
“The App manages and securely stores all payment cards including credit, debit, loyalty, and gift cards on the device,” LoopPay explained. “Currently, we offer the LoopPay Card, CardCase, and a stand-alone Case for iPhone 5/5s, 6, and 6 Plus.”
The company’s explanation of how LoopPay works provided no inkling of the scope of Samsung Pay, as it implied any manufacturer could use it. Samsung turned the market on its head with one simple innovation: it built the LoopPay technology into the Galaxy S6 and S6 Edge, instead of providing an accessory device.
The result is that the phone merely needs the app to be activated for it to run Samsung Pay. It also means that the accessory case for iPhones is almost instantly obsolete.
The service is initially being launched in Samsung’s home territory, South Korea, and in the United States – a direct challenge to Apple. There is no timeframe on its roll-out elsewhere, which suggests Samsung is initially more focused on taking on Apple than on serving consumers.
That is also, most likely, the reason for the cut-and-paste branding of the payment service. It may be the snappiest possible title, but calling it Samsung Pay is also the most sincerest possible form of flattering Apple. If the wheels come off this particular bandwagon, it will be more than a financial disaster for Samsung.
Later this year, American retailers will be required to implement EMV (Europay MasterCard Visa) “chip-and-pin” terminals, which may well have to include NFC technology. That opens the rest of the US market to Apple, but still leaves Samsung with a global edge.
In the meantime, other challengers are likely to emerge. Rumours have already surfaced that LG Electronics will build payment technology into the next version of its flagship phone, to be called the LG G4. Numerous mobile payment applications will also have to change their game or find a way to integrate or add to the two Pay systems.
Google Wallet, which was once expected to dominate mobile payments, is fast fading into the background. Its near-demise is a timely lesson to the Pay masters of the mobile world that market domination in one arena does not automatically lead to market success in another.
LoopPay on how MST works:
“MST technology generates changing magnetic fields over a very short period of time. This is accomplished by putting alternating current through an inductive loop, which can then be received by the magnetic read head of the credit card reader. The signal received from the device emulates the same magnetic field change as a mag stripe card when swiped across the same read head. LoopPay works within a 3-inch distance from the read head. The field dissipates rapidly beyond that point, and only exists during a transmission initiated by the user.”
Win a Poster Heater with Gadget and Takealot.com
This winter Gadget and Takealot.com are giving away three Poster Heaters, which look like posters but become heaters when you plug them in.
Three Gadget readers will each win a unit, valued at R550 each. To enter, follow @GadgetZA and @Takealot on Twitter and tell us on the @GadgetZA account how many Watts the heater consumes.
What’s the big deal about these heaters? Many of us are struggling to keep the balance between soaring electricity costs and the need to keep warm this winter.
However, the recently launched Poster Heater by EasyHeat and distributed in South Africa by Takealot.com is not only one of the most cost effective electric heaters currently on the market, it is also easy to setup and use.
As the name indicates, it is a poster similar to one you would hang on a wall. But, plug it in and it turns into a 300 Watt heater. The Poster Heater isn’t designed to heat hallways or large rooms, but rather smaller ones like a bedroom or a baby’s nursery or a dressing room.
It uses radiant heating, which means that it heats up in a couple of minutes and the heat is directed at the objects or people around it, quickly taking the chill out of the air and providing a comfortable ambient temperature.
The other advantage of radiant heating is that it doesn’t dry out the air like infrared or gas heaters. Users also don’t have to worry about their children or pets getting too close to it because, even though it gets hot, it can be touched.
To enter the competition follow the steps below:
Competition entry details:
3. The competition closes on 31 July 2018.
4. Winners will be notified via Twitter on 1 August and Takealot.com will be in touch to organise delivery.
5. The competition is only open to South African residents.
Deezer to host Hotstix’s Mandela tribute playlist
Deezer is celebrating Nelson Mandela on the centenary of his birthday by hosting a tribute playlist created by music legend Sipho “Hotstix” Mabuse.
Mabuse, a legendary figure in African music, first rose to prominence in the 1970s with his band Harari and later developed a name for himself as a solo artist. One of his best known songs was the global hit BurnOut in the 1980s.
The playlist takes the listener on a captivating musical journey through the life of Nelson Mandela. It was compiled by Mabuse, who consulted with Mandela’s family and friends to ensure that the music would be relevant and accurate. The playlist also features commentary by Mabuse, which was recorded in his Soweto home.
“I have tried to tell the story of the music that Madiba loved,” says Mabuse. “The Playlist excludes the time in prison obviously, as Madiba would not have had exposure to music in that time. We have focused on the music we know he loved before and after that period. This recording was really an emotional journey for me, but an incredible opportunity to document these memories.”
The playlist features the music the young Mandela loved, such as The Manhattan Brothers, Solomon Linda, Brenda Fassie and Miriam Makeba. It includes struggle songs from Chicco, Johnny Clegg, Hugh Masekela and Yvonne Chaka Chaka. The playlist also includes Mandela by Zahara, one of the younger artists who caught Madiba’s ear.
Mabuse also offers stories of his own songs, such as Shikisha, a song greatly beloved by the former President.
“I was delighted to share my thoughts and hope the listeners enjoyed the musical journey,” says Mabuse. “Madiba did enjoy music immensely and we all have a purpose wherever we are in the world to celebrate culture and to learn from different cultures and music forms and styles.”
This playlist was inspired by the Nelson Mandela 100 campaign, calling on corporates and individuals to act as sources of inspiration and engage in conversation and action.