How does Samsung Pay work?

25 Mar 2024

Samsung Pay is a digital payment platform that streamlines transactions using Samsung smartphones and other compatible devices.

It operates on a simple yet powerful principle: transforming your smartphone into a digital wallet that securely stores your payment information and allows you to buy with a tap or a swipe.

The mechanics behind Samsung Pay revolve around three key technologies: Near Field Communication (NFC), Magnetic Secure Transmission (MST), and tokenization.

1. Near Field Communication (NFC)

NFC is a wireless communication technique that allows devices to connect when they are close to one another, usually within a few millimeters.

In the context of Samsung Pay, NFC allows users to make contactless payments by tapping their smartphones against NFC-enabled payment terminals.

2. Magnetic Secure Transmission (MST)

MST is a groundbreaking technology developed by Samsung that simulates the magnetic stripe found on traditional payment cards.

When making a payment using Samsung Pay, the device emits a magnetic signal that mimics the data stored on a physical card's magnetic stripe, enabling users to swipe their smartphones at traditional magnetic stripe card readers.

3. Tokenization

Tokenization is a security feature used by Samsung Pay to protect users' payment data. When you link your credit card to Samsung Pay, a token, which is a random string of numbers, replaces your card information during transactions. Even if someone intercepts the token, they can't misuse it for fraud, making Samsung Pay more secure.

Step-by-Step Process of Making a Payment with Samsung Pay

1. Adding Payment Cards: Users can add their credit, debit, or prepaid cards to Samsung Pay by scanning the card using the device's camera or manually entering the card details. Once added, the cards are secure within the Samsung Pay app.x

2. Initiating a Transaction: To make a payment, users launch the Samsung Pay app on their device and select the desired payment card. They can then authenticate the transaction using their preferred method, such as fingerprint or facial recognition.

3. Completing the Transaction: If the terminal supports NFC, users can tap their device against it to complete the transaction.

If the terminal only supports magnetic stripe cards, users can hold their device near the card reader and wait for the transaction to be processed using MST.

4. Secure Authentication: Throughout the entire process, Samsung Pay employs robust security measures, including tokenization and biometric authentication, to ensure the integrity and security of the transaction.

In conclusion, Samsung Pay operates on a foundation of cutting-edge technologies to provide users with a secure, convenient, and versatile platform for making digital payments and shaping the future of financial transactions worldwide.