Samsung mobile payment can go far? Prospects are not optimistic

After Google Google Wallet, Apple Apple Pay, Samsung Electronics officially entered the mobile payment battlefield. Yesterday, Samsung launched its own mobile payment Samsung Pay, want to share the mobile payment market "cake", and have plans to enter the Chinese market. Industry pointed out that Samsung has always been rely on the hardware "to fight the world," the lack of ecological soil, coupled with the long-term consumer demand for mobile payment over the years can not afford to raise, Samsung mobile payment can not go far optimistic.

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On the eve of the 2015 World Mobile Congress (MWC), Samsung Electronics unveiled Samsung Pay, its long-awaited own mobile payment service, pre-installed on its new generation of flagship smartphone Galaxy S6, which is currently working with Visa, MasterCard Two international card organizations to discuss cooperation.

It is worth mentioning that, before the debut of Samsung Pay, Samsung Electronics acquired a US mobile payment service provider LoopPay, this time launched its own mobile payment tools is also based on this. Unlike NFC (Near Field Communication) technology, which is mainly used by other vendors, LoopPay Mobile Payments are compatible with existing POS terminals, which means businesses can upgrade their existing payment systems at a relatively low cost.

"Since Apple launched Apple Pay, the mobile payment market has been on the rise, with Samsung following the trend, especially in the quarter with its net profit declining for several quarters, benefiting the company's equity market performance." CEO Zhang Yi said in an interview with the Beijing Commercial Daily. Another observer pointed out that Samsung launched its own mobile payment, will inevitably be with the Google camp as the "big patriarchal" Google have a positive confrontation, perhaps Samsung move is to get rid of dependence on Google.

Settled in China is difficult

Samsung Electronics said that Samsung Pay will be put into operation in the second half of this year, initially from the United States and South Korea started the domestic market. In the future, Samsung Electronics also plans to promote this mobile payment service to Europe and China. Analysts believe that the Samsung Samsung Pay landing in the Chinese market is not difficult to take root, because Samsung is the lack of mobile payment to promote universal ecological soil.

All along, compared to Apple, or the domestic Internet giant, Samsung Electronics has obvious shortcomings and weaknesses in the software services and ecosystem, or even congenital gene deficiency. The strength of its hardware has always been weakening, which is the recent earnings figures from Samsung Electronics is also evident, due to the slowdown in the growth of the Galaxy smartphone with the main revenue, Samsung's net profit for five consecutive quarters showed a year-on-year decline situation. Samsung in the high-end smart phone market rival Apple iPhone 6 / 6Plus impact in the low-end field has been Huawei, millet, OPPO and other domestic manufacturers nibbling, the old smart phone boss throne is a crisis.

In fact, this lack of "soft power" is the direct result of the lack of user stickiness, not only in the Chinese market, but also in other markets will be Samsung's elusive issue.

User demand is still low

Zhang Yi pointed out that whether it is Samsung, Apple, Google, in the field of mobile payments to fight a beautiful battle by no means easy, the biggest crux of the problem is that mobile phone users are far from cultivating the rigid demand for mobile payments. "Mobile payments, or NFC payments, are not new words, and even slogans have been calling for years. No matter how hard-pressed manufacturers can promote their convenience, consumers may sometimes find it cumbersome. Generally not high. "

Another point of view that the "security concerns" is also consumers in the short term is difficult to cultivate the main reason for the trust of mobile payment, "especially the regulatory system is still perfect, the security will be questioned. For financial security considerations, regulators may still have concerns, resulting in the emergence of mobile payments such as Apple and other foreign companies settled in China. " Analysts predict that even though the mobile payment market looks hot, the biggest challenge to mobile payments is that user needs are far from being cultivated and in fact a "virtual fire" that will be hard to see in a short time Break.

As far as the domestic market is concerned, the mainstream way of mobile payment will still be dominated by Internet giants such as Alibaba and Tencent. It is not easy for foreign enterprises like Samsung to think of the Nuggets.