Payments are in a constant state of evolution. Banking has been on a steady trajectory away from cash to cards, and now we are a seeing the next phase: mobile card payments. Driving this latest stage are customers, banks and relevant partners seeking the best ways to utilise the latest technologies while still supporting standard payment methods.
Right now, consumers split their transactions between different payment methods, depending on the circumstances. In Sweden, you may use Swish to split the bill after a night out and use your card when you go to the grocery store or shop online. For consumers, the payment method is secondary – of primary importance is that everything works seamlessly with their banks and their devices.
To achieve this, the different players have to work together: financial services don’t exist in a vacuum, and there is strength in partnership. This collaborative spirit has been embraced by Nordea and we are proud to have launched Samsung Pay, the result of our strategic partnership with Samsung.
Within the financial ecosystem, Nordea is a primary provider of vital services including payment methods, financing, security and authentication. Samsung provides specialised expertise in mobile technology and innovation. Together, we are working to bring new and relevant services to our customers that make the most of our strengths.
Nordea customers can now add their private cards to their compatible Samsung smartphone and pay via the Samsung Pay functionality in practically all stores in Sweden. The easy-to-use functionality is based on Samsung Pay’s use of both the technology of NFC contactless and Magnetic Secure Transmission (MST). MST is a technique sending wireless tokenised data via magnetic waves from the device to the terminal. Merchants are able to accept this new technology without making any upgrades to their payment terminals.
As consumers tie more of their daily activities to their mobile devices, we expect to see mobile payments increase. This will make card payments even more relevant and its value proposition even stronger. People live their lives with their phones, they want to use apps that make life easier and reduce the need to carry around items such as bank cards, loyalty cards and travel passes. With Samsung Pay, when you are in a local store after an intense workout with Spotify in your ears, you only need to blipp your phone in order to buy that cold drink in an instant.
And payments are just the beginning. Already Samsung Pay customers can review their latest transactions and receive special offers. Over time, Nordea and Samsung envisage a mobile service full of new, value-added functionalities. It looks like the only thing customers won’t be paying for in the future is a new leather wallet.
Usually, evolution leads to extinction. But in the payments industry, we see a future where the payment method is secondary to the whole payments landscape. We know that with the right strategic partner we can create an optimal shopping experience, beyond payments, that fulfils our customers’ needs.
You can read the press release about the launch here.
/ Marina Repo- Business Owner Nordea Samsung Pay project