Credit Unions Prepping for Samsung Pay, Android Pay As Samsung Offers $50 to New Users

By Kevin Woodward

With no shortage of mobile-payments options available to users, backers of Android Pay and Samsung Pay are trying to entice consumers by making their services more broadly available and by offering rebates.

Institutions using The Members Group, a credit-union service organization, soon will be able to enroll their customers in Android Pay and Samsung Pay, the Des Moines, Iowa-based company announced Tuesday.

The Members Group says some of its clients expect to test Google Inc.’s Android Pay and Samsung Electronics Co. Inc.’s Samsung Pay later this year and in 2016.

“Today, only the largest issuers are participating in these wallets,” Brandon Kuehl, The Members Group manager of product development, said in a press release. “TMG is prepared to change that beginning this week.” The Members Group said it will use proprietary technology to make it easier for its issuer clients to offer Android Pay and Samsung Pay, but provided no details about the service.

Samsung Pay may prove more popular, says The Members Group, referencing a survey it conducted of its clients that found 54% expect Samsung Pay to be more attractive to cardholders compared with 40% who cited Android Pay. That may be because, unlike Android Pay, Samsung Pay doesn’t depend solely on near-field communication (NFC) to connect smart phones to point-of-sale readers. Samsung Pay also offers magnetic stripe emulation technology, which could increase the number of locations it could be used at, the company says.

Both services compete against Apple Inc.’s Apple Pay. The Members Group says 75% of financial-institution clients either offer Apple Pay enrollment for their payment cards or are preparing to. The average transaction value made with Apple Pay by The Members Group client increased 151.2% from $14.43 in January to $36.25 in October. Apple Pay is most popular at McDonald’s, Starbucks Co., Walgreen Co., and vending machines.

Meanwhile, Samsung is heavily promoting its Samsung Pay-compatible smart phones by offering a $50 rebate to consumers who buy one and then enroll their first card in the mobile-payment app.