The future of payments is one step closer to reality with the announcement of a new partnership.
Mobile payments could soon move from sparse adoption to being located in most major retail outlets, if a new partnership between internet payment company PayPal and phone giant Samsung is successful.
“By working with Samsung to leverage fingerprint authentication technology on their new Galaxy S5, we are able to demonstrate that consumers don’t need to face a tradeoff between security and convenience,” said Hill Ferguson, Chief Product Officer for PayPal.
The deal was recently announced at Mobile World Congress, and will bring substantial security benefits to the mobile payment field. The addition of a fingerprint scanner in the new Samsung device is likely one of the reasons the Korean manufacturer was chosen over other makers.
In addition, as one of the biggest producers of smartphones, it was natural for PayPal to partner with the company. At first, the newest Galaxy S5 handset from Samsung will be used, with the potential for other devices and manufacturers to come onboard further down the line.
Mobile payments could have a significant impact on the retail strategy of many businesses, especially as moving to temporary locations to sell is now an option. If a fair or show is in town, a stall can be set up using mobile phones to take payments. By using a fingerprint scanner, security is ensured.
“We are very excited about our relationship with PayPal as it will bring one of the most trusted online payment solutions in the world to the broader mobile market,” said Hankil Yoon, Senior Vice President of Mobile Product Strategy with Samsung.
Over the next few years, it’s likely mobile phones will grow their presence within the retail space, potentially eclipsing other forms of payment. The ability to save printing receipts could be another reason for consumers to switch over.