In view of keeping its position up in the Chinese as well as world market, Samsung does not want to leave any stone unturned. This time it has shaken hands with Alibaba for payment facilities.
Samsung, the mobile giant has come up with this step for improving its position in Chinese market, where Alibaba is the market Leader. This deal is going to boost sales of Samsung in Chinese market, as expected. The other player in the market is Apple Pay, from iPhone, which has entered the market in China a month earlier.
Mobile Payments partnership could prove to reverse the downward trend of Samsung in China, which is a tough market for foreign players. Since Mobile Payments cater to the wealthier segments, hence, this deal could prove to be, if not the only route, but a pathway to success for Samsung in China.
Samsung has struck a deal with Alipay – a payment app operated by Alibaba unit Ant Financial Services Group. It will now be easy for Samsung users to make payments through Alipay, which is already running successfully in China. Though Samsung has launched its own payment system, Samsung Pay in China, but since no new comer can beat the popularity and the market share that Alibaba holds, Samsung has tied up with Alibaba for Alipay.
All the customer needs is to scan the QR code, provided by the retailer, while paying for something in store. The Alipay option will be available to Samsung users in Samsung Pay Wallet. Though Samsung Pay works with the magnetic stripe technology yet the Samsung Pay users will have to scan the retailer’s QR code on a Near Field Communication Terminal. The users of Samsung Pay will not have to separately get the Alipay app as it will be available to them in Samsung Pay.