Samsung Pay preps rollout, chases Apple Pay, Android Pay

Will accepting magnetic stripe cards via the acquisition of LoopPay give Samsung Pay an edge? Samsung sure hopes so.

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Samsung said that it will roll out Samsung Pay, the company's payment service built out via the acquisition of LoopPay, in Korea Aug. 20 and the U.S. on Sept. 28.

The plan is to roll out Samsung Pay in the U.K., Spain and China in the near future.

JK Shin, CEO of Samsung Electronics, announced the Samsung Pay rollout at an event in New York launching the Galaxy Note 5 and Galaxy Edge+.

Samsung Pay will be preloaded on those new devices. Samsung will roll out a software update to enable Samsung Pay on the Galaxy S6 and S6 Edge.

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The electronics giant is playing catchup to Apple Pay, which grabbed adoption with partnerships with financial services firms, retailers and other outlets. Samsung Pay will also have to differentiate from Android Pay, Google's entry into payments.

What Samsung is hoping to do is use the combination of magnetic transmission and Near Field Communication technologies to gain share. The big win with the LoopPay acquisition is that Samsung Pay will work with most point-of-sale terminals already.

As for partnerships, Samsung Pay said it will work with payment networks such as American Express, Discover, Mastercard and Visa as well as banks around the world. Samsung Pay partnerships appear to be most built out in Korea with all the major credit card companies there on board.

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At the event, Injong Rhee, head of Samsung Pay, said the company's payment system is aimed at both large and small companies.

Rhee said the goal for the engineering team was to make smartphone payments easier and secured with Samsung's KNOX technology. He cited the usual benefits of consolidating cards and touted Samsung Pay's ability to take magnetic cards. It's worth noting that most point of sale terminals are about to be upgraded and will take NFC too.

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Samsung is playing some catchup, but it's not about being first, said Rhee, who noted "your wallet is going to miss you."

"Changing lifestyle is not about being first in the market but creating a compelling opportunity that removes this friction," said Rhee. "Samsung Pay is accepted everywhere. It works with the big chains but also at your local fruit stores. If retailers can swipe a card, most likely they will accept Samsung Pay."