A model demonstrates Samsung Pay in this file photo released by Samsung Electronics.
SEOUL, July 20 (Korea Bizwire) — Samsung Electronics Co. announced on Wednesday that it has decided not to charge commissions for its digital payment service Samsung Pay, and will renew contracts with local credit card companies.
Since its launch in South Korea in 2015, Samsung Pay has continued to renew operational contracts with card firms.
These contracts include terms stipulating that Samsung will not receive any separate commission from card companies regarding Samsung Pay, and these conditions have been automatically renewed each year.
However, the tech giant sent notices to card companies in May, stating that the conditions would not be automatically renewed, raising speculation that Samsung Pay commissions were imminent.
In particular, Apple Inc.’s long-awaited mobile payment service Apple Pay, which recently started its service in the country, currently charges a commission of up to 0.15 percent per transaction to local credit card companies.
“To develop the nation’s mobile payment service ecosystem, we will coexist with local credit card companies and provide customers with the best Samsung Pay service,” Samsung said.
J. S. Shin (js_shin@koreabizwire.com)
