Samsung takes fight to Apple with mobile wallet strategy

Tue Jun 21, 2016 7:00pm EDT
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* Samsung launches mobile payment in Singapore, Australia

* Samsung takes no fee, hopes the service to boost hardware sales

* Apple, Samsung's payment services available in 6 countries

* Their mobile transaction value remains fraction of total market

By Matt Siegel and Se Young Lee

SYDNEY/SEOUL, June 22 (Reuters) - Smartphone leader Samsung Electronics has for years been a spectator as Apple built a services "ecosystem" supporting its products. But now, as the two develop the market for mobile payments, the Korean tech giant is taking the fight to its U.S. archrival.

For Apple, offering users the ability to tap their iPhones on sales terminals to buy a coffee, snack or train ticket is a fresh revenue stream, like its iTunes music and entertainment service. The banks it works with cough up a small charge for each transaction - reportedly 0.15 percent in the United States.

Samsung, which has trailed behind its competitors in software and services, is taking a different path.

It is not seeking fees from its financial partners, viewing Samsung Pay as an engine to drive sales of phones and other devices.   Continued...