New Samsung Pay TV ad takes shots at Apple Pay's retail reach

Posted:
in General Discussion
A new Samsung TV ad, featuring comedian Hannibal Buress, continues a theme of pointing out that Samsung Pay can be used in stores where Apple Pay isn't supported.




In the commercial, Buress enters Katz's Delicatessen in New York City and asks to pay with his phone, only to be told "You mean like Apple Pay? We don't have that." Buress then explains that he means Samsung Pay, which "kind of works everywhere," even on "janky" terminals like the one at Katz's.

Samsung Pay is based on technology from LoopPay, which was acquired by Samsung in early 2015. Unlike Apple Pay, which requires that a merchant support both NFC and Apple's specific platform, Samsung Pay can be used virtually anywhere since it works with conventional magnetic card readers as well as NFC. Many American retailers have yet to upgrade to NFC-ready terminals.



The service's main limitations are that in the U.S., a device must be on AT&T, Sprint, T-Mobile, U.S. Cellular, or Verizon, and Samsung currently has a much smaller number of supporting card issuers, among them Citi, Chase, and Bank of America. Compatible devices include the four phones in the S6 series and the Note 5.

Apple Pay's retail presence should expand in 2016, thanks to launches in more countries -- most notably China -- and efforts to add merchants in existing markets. In the U.S., partners like Cinnabon, Starbucks, KFC, and JCPenney should go live this year.
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Comments

  • Reply 1 of 62
    MacProMacPro Posts: 18,260member
    Every attack ad against Apple ends up backfiring.  When will these companies learn?
    edited January 2016 suddenly newtonlatifbpmoreckcaliredgeminipa
  • Reply 2 of 62
    mejsricmejsric Posts: 133member
    Samsung is more obsessed than Apple fans.
    latifbppalominemoreckcalipotatoleeksoupanton zuykovredgeminipa
  • Reply 3 of 62
    Janky is an apt word for Samsung stuff. 
    latifbpSpamSandwichmacky the mackymoreckcaliredgeminipa
  • Reply 4 of 62
    jfc1138jfc1138 Posts: 3,090member
    sog35 said:
    Samsung Pay: We are accepted at stores that have credit card terminals that are unsafe and easily open to fraud.

    besides the point I've read many articles that said loop pay is extremely unreliable. To the point its not even worth using.
    That's the real deal isn't it? Get one too many of those letters saying your information may have been hacked and your card is  being replaced and Apple Pay becomes THE way to pay: or cash.
    latifbppalominemoreckcaliredgeminipa
  • Reply 5 of 62
    am8449am8449 Posts: 343member
    On a side note: has anyone ever used Apple Pay at a restaurant? 

    I can't imagine giving the waiter my iPhone to scan at the register. Do they bring the terminal to you?
  • Reply 6 of 62
    Sog35 said:
    Samsung Pay: We are accepted at stores that have credit card terminals that are unsafe and easily open to fraud.

    besides the point I've read many articles that said loop pay is extremely unreliable. To the point its not even worth using.

    I dislike Samsung's practices as much as the next guy, but that simply isn't true.

    The ORIGINAL implementation for LoopPay allowed cards to be used with any terminal WITHOUT the bank having to change their backend software. In this case the card number was literally broadcast over the air where anyone could see it. This also caused Chip/PIN terminals to give you the "Please insert your Chip card" message, as if you tried to swipe your card (Chip cards can't be swiped in terminals that accept Chips). LoopPay was also updating their system to allow Chip/PIN cards to work with MST by having banks update their software to support it.

    Samsung decided to not use this feature (allow any cards to work) and went with the same tokenization system Apple Pay uses. This immediately prevented the use of the majority of cards as now the banks have to update their software to work with Samsung Pay (just like they do with Apple Pay).


    Where Samsung is being deceitful is claiming their system works at almost ANY terminal. While this is true, if your bank isn't signed on then your card won't work. In short, Samsung is only telling you HALF the story. IF your bank is signed up THEN Samsung Pay will work on almost any terminal.

    Last time I checked Samsung had 30 something banks signed on. Apple Pay is well over 900 (closer to 1,000). Samsung rollout of banks is going slow, and it's a race between how fast they can sign up banks and how fast merchants start updating their terminals. At some point in the future, Samsung Pay will no longer have any advantage because magstripe terminals will disappear. So it's going to be tough for Samsung to convince banks to update their software for a system that's being phased out. Meanwhile, Apple Pay is trying to get banks to update their systems for the newest technology (NFC terminals).

    Pretty easy to see who will come out on top in this race.
    edited January 2016 fotoformatcornchipredgeminipa
  • Reply 7 of 62
    am8449 said:
    On a side note: has anyone ever used Apple Pay at a restaurant? 

    I can't imagine giving the waiter my iPhone to scan at the register. Do they bring the terminal to you?
    In Canada they bring the terminal to you, about 99% of the time in my experience.
    bloggerblog
  • Reply 8 of 62
    slurpyslurpy Posts: 5,151member
    Nothing new here. Samsung's strategy has always been doing some shit for short-term gain, while it might shoot them in the foot long term. This is consistent with that philosophy. For a limited time, they can claim that it is accepted more widely, yet it's using an inferior, less private/safe technology for the long run.
    calilolliverredgeminipa
  • Reply 9 of 62
    I laugh each time I see these commercials, given the life of the mag stripe and mag reader terminals is limited here in North America.
    redgeminipa
  • Reply 10 of 62
    am8449 said:
    On a side note: has anyone ever used Apple Pay at a restaurant? 

    I can't imagine giving the waiter my iPhone to scan at the register. Do they bring the terminal to you?
    Here in Switzerland it depends on the kind of restaurant, McD etc. at the till and sit down etc at the table.

    Regardless, there is no way for the phone to pay at the register without your finger being there to authorize it. 

    For kicks, I suppose you could strap your Apple Watch on the server, put the pin code in and send them off to pay with it though. 
  • Reply 11 of 62
    mtbnutmtbnut Posts: 195member
    In Canada they bring the terminal to you, about 99% of the time in my experience.
    I don't see why an AirDrop-like system couldn't work here. You open AirDrop (CashDrop?), see "Chuck's Fried Chicken & Oil Change" as a recipient, a new cash register-looking UI opens, you punch in your table number/amount/other unique info, and DONE.
    edited January 2016 palomine
  • Reply 12 of 62
    Sog35 said:
    Samsung Pay: We are accepted at stores that have credit card terminals that are unsafe and easily open to fraud.

    besides the point I've read many articles that said loop pay is extremely unreliable. To the point its not even worth using.

    I dislike Samsung's practices as much as the next guy, but that simply isn't true.

    The ORIGINAL implementation for LoopPay allowed cards to be used with any terminal WITHOUT the bank having to change their backend software. In this case the card number was literally broadcast over the air where anyone could see it. This also caused Chip/PIN terminals to give you the "Please insert your Chip card" message, as if you tried to swipe your card (Chip cards can't be swiped in terminals that accept Chips). LoopPay was also updating their system to allow Chip/PIN cards to work with MST by having banks update their software to support it.

    Samsung decided to not use this feature (allow any cards to work) and went with the same tokenization system Apple Pay uses. This immediately prevented the use of the majority of cards as now the banks have to update their software to work with Samsung Pay (just like they do with Apple Pay).


    Where Samsung is being deceitful is claiming their system works at almost ANY terminal. While this is true, if your bank isn't signed on then your card won't work. In short, Samsung is only telling you HALF the story. IF your bank is signed up THEN Samsung Pay will work on almost any terminal.

    Last time I checked Samsung had 30 something banks signed on. Apple Pay is well over 900 (closer to 1,000). Samsung rollout of banks is going slow, and it's a race between how fast they can sign up banks and how fast merchants start updating their terminals. At some point in the future, Samsung Pay will no longer have any advantage because magstripe terminals will disappear. So it's going to be tough for Samsung to convince banks to update their software for a system that's being phased out. Meanwhile, Apple Pay is trying to get banks to update their systems for the newest technology (NFC terminals).

    Pretty easy to see who will come out on top in this race.
    Are you sure this is accurate? I work for First Data and we handle the tokenization and encryption for Apple Pay, Samsung Pay and Google Pay. As far as i know the tokenization/encryption is only on Samsung Pay purchases using NFC. Any purchases using MST (magnetic secure transmission) are done exactly like physically credit cards meaning all your information is sent over exactly as it is on the card (no token # instead of read CC #, etc).
    gijoeinlacaliRayz2016
  • Reply 13 of 62
    irelandireland Posts: 17,589member
    I hope Apple's long term strategy is to remove Samsung as a supplier. I'd like to see that company go under.
    edited January 2016 palominecali
  • Reply 14 of 62
    am8449 said:
    On a side note: has anyone ever used Apple Pay at a restaurant? 

    I can't imagine giving the waiter my iPhone to scan at the register. Do they bring the terminal to you?
    Applebee's has the terminal right at your table. And the food's great!
    gijoeinla
  • Reply 15 of 62
    adamski said:
    am8449 said:
    On a side note: has anyone ever used Apple Pay at a restaurant? 

    I can't imagine giving the waiter my iPhone to scan at the register. Do they bring the terminal to you?
    In Canada they bring the terminal to you, about 99% of the time in my experience.
    I live in California and Apple Pay is still very limited. Most of the restaurants I often go to don't accept Apple Pay, and restaurants in the U.S. never brings to terminal to the customer.
  • Reply 16 of 62
    jfc1138jfc1138 Posts: 3,090member
    am8449 said:
    On a side note: has anyone ever used Apple Pay at a restaurant? 

    I can't imagine giving the waiter my iPhone to scan at the register. Do they bring the terminal to you?
    Being linked to Touch ID handing your phone over wouldn't work. One of the security aspects I like.

    Haven't used it at a restaurant, one of my few remaining cash uses.
  • Reply 17 of 62
    Samsung has a valid ad. I live in a 1MM plus metropolitan area and almost no merchants take Apple Pay. The only one of the stores I routinely shop at that uses AP is Rite-Aid.  There is a limit to how many times you can go to a drugstore to use Apple Pay. 
  • Reply 18 of 62
    lkrupplkrupp Posts: 7,098member
    Samsung is just playing on people’s ignorance. For many convenience trumps security every time. I’m always amazed by the number of people I know who walk around with their phones unlocked with no PIN code or even TouchID. It’s too inconvenient to unlock their phones when they want to use them. I also amazed by attitudes that assume the bank or the credit card company will have to deal with fraud so security is not really necessary anyway. So yes, Samsung does have something to crow about here. You can use Samsung Pay wherever credit cards are accepted with the same security risks as your physical card.
  • Reply 19 of 62
    adamski said:
    am8449 said:
    On a side note: has anyone ever used Apple Pay at a restaurant? 

    I can't imagine giving the waiter my iPhone to scan at the register. Do they bring the terminal to you?
    In Canada they bring the terminal to you, about 99% of the time in my experience.
    Why would anyone ever let the waiter take a credit card to their register? This leaves the opportunity for the waiter to write down the card number, expiry date and three-digit security code, and then rush home at the end of the shift and try charging thousands of dollars on an internet shopping site. It happened to me in Florida last year. If a restaurant does not bring the terminal to the table, I always accompany the waiter to the register, Apple Pay or not. Never let a credit card be handled by anyone else!
    chiacalih2p
  • Reply 20 of 62
    zoetmbzoetmb Posts: 2,448member
    If Katz's is taking credit cards, that's totally new.  They were always cash only.  If you didn't have the cash, they'd point you to one of those third-party cash machines in the back of the store that charges a few dollars in fees.  

    I frequently find that even with new terminals that have NFC and a chip card slot, that they frequently don't work.   I was in a Fairway last night - Apple Pay didn't work and when I attempted to use the chip slot, I was told that wasn't working either and I had to slide the card.

    Apple may have a lot of banks signed up, but they need to do a better job getting retailers and restaurants to sign up.   Restaurants are trickier because the old model of a server taking your credit card to a back room or register doesn't work.    IMO, Apple Pay (or even Samsung's system) is almost totally useless until it becomes ubiquitous because until that time, you can't leave your wallet at home.   And it's not really faster using Apple Pay than swiping a credit card.   In my local supermarket, which does accept Apple Pay, you still have to approve the amount and sign the terminal.   

    I've been surprised at the number of retailers who haven't yet switched to the new terminals because it's my understanding that retailers are now responsible for fraud if the chip slot isn't used.   

    No small to medium sized business deals directly with a credit card company.  They all go through payment processors.  So I don't really understand why Apple doesn't have these payment processors signed up.   Or does Apple work around them?   What am I missing?

    And while I realize that there is lots of fraud, in almost 40 years of using credit cards, I've only experienced fraud twice:  once a credit card was stolen from my daughter's house, but the credit card company caught it immediately when the thief tried to use it and called to ask if we had made the purchase, and once there were two small charges from a bar in Texas (I live in NY).  Since the charge was so small, I have a feeling that the server manually punched in the credit card number, punched it in wrong, but still managed to get the check digit correct and it turned out to be my card #.   The credit card company removed the charge immediately when I pointed it out. 
    palomine
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