A recent internal transfer within Samsung Electronics seems to indicate that the company wants to integrate its crypto wallet into Samsung Pay.
According to BusinessKorea, the blockchain task force has recently moved from the mobile business division to the service business division. Thus, the blockchain task force will be working for the division that develops Samsung Pay. Just like Apple Pay, this is a mobile payment service, very popular in South Korea and elsewhere around the globe.
What Does the Blockchain Task Force Work On?
Like many tech companies, Samsung Electronics is keen to explore new technologies and build products and services based on them. To this end, the company created a blockchain task force and launched its own crypto wallet. This crypto wallet is already integrated into the company’s latest flagship Samsung Galaxy S10.
However, there are rumours that Samsung is aiming for something more. And that’s its own blockchain network and token on the Ethereum protocol. In April, an unnamed source disclosed to CoindeskKorea, quoted by CCN:
Blockchain task force made several models and are evaluating [them]. There are already several platforms that are functioning after some internal tests.
The Rise of Samsung Pay
The transfer of the blockchain task force to the division that maintains Samsung core services, such as Samsung Pay, opens several possibilities. The most important is adding yet another feature to push for a larger adoption of the mobile payment system.
As CCN reports, statistical data released by industry tracker WiseApp show that Samsung Pay was the most popular financial application at the end of 2018. The app had a significant adoption increase of 58%, reaching 10.4 million users.
As for the blockchain task force, as previously stated, it already launched the Samsung Blockchain Wallet, available on Samsung Galaxy S10. The next logical move for the vice-president of the service business division, Kim Yong-jae, would be to merge the two services: Samsung Pay and Samsung Blockchain Wallet.
One Step Ahead of the Competition
After all, Samsung is in bitter competition both with Apple and Google for more market share. And one way to fight this battle is through innovative services. So far, the South Korean company has already improved Samsung Pay by acquiring LoopPay and its technology. With the crypto wallet integration, Samsung Pay would step in line with other major companies that integrate blockchain into their payment services.
At the moment, one of the major companies that provides this service for its clients is the US telecom giant AT&T.
How Would Blockchain Integration Improve Samsung Pay?
For the millions of users of this service, the benefit would be in reduced transaction fees. Currently, for each payment, Samsung Pay users have to pay two fees. One for value added network operators and one for payment gateway operators.
With blockchain integrated into the service, these fees would disappear, because the transactions would take place on a peer-to-peer basis.
At press time, Samsung Electronics didn’t comment on the future projects of the blockchain task force under the new management.