Seoul - Samsung Electronics delayed the start of its new payments service, hindering its ability to gain ground on a competing service from Apple.
Samsung Pay will kick off services in the US and South Korea from September when the company unveils its next high-end device, executive vice-president Rhee In Jong told an investor call on Wednesday. The company had previously predicted it would start as soon as July.
Google, Apple and PayPal are among companies seeking to capture a piece of the mobile-payment market, as customer seek to use their smartphones to buy coffee, clothing and food in retail outlets and restaurants. The market will top $142 billion by 2019, up from $67 billion this year, according to Forrester Research.
“We are targeting September timeframe,” Rhee said. After starting in Korea and the US, Samsung will expand to other markets, including Europe, China, Australia and South America, he said.
Samsung announced its new payments service in March, unveiling the feature as part of its new high-end Galaxy S6 smartphone range. Samsung partnered with companies including MasterCard and Visa on the new service, which is to be compatible with 90 percent of card readers, the company said at the time.
Samsung bought LoopPay in February to help it develop technology for mobile payments. LoopPay makes it easier for retailers to accept payments via smartphones.
* With assistance from Dave McCombs in Tokyo
Bloomberg