Samsung Pay is adding Chase Pay as a funding option, combining the strengths of two very different approaches to mobile payments.
Samsung Pay's claim to fame is a technology that allows the NFC wallet to also emulate a magnetic stripe signal at terminals that don't accept NFC payments. Chase Pay's the polar opposite — the app uses a QR code reader, a low-tech alternative that makes it available on many more phones.
The agreement addresses the limitations of JPMorgan Chase's approach, which requires merchants to have a QR code reader at their counters. “Now our customers can use the Chase Pay app at millions of merchants around the country,” said Jennifer Roberts, head of Chase Pay.
While Chase cards have long been able to be used with the Samsung Pay wallet, what makes this partnership different is that Chase Pay is a mobile wallet in its own right. Starting Friday, Chase Pay customers with compatible Samsung Galaxy smartphones will have the option to link their Chase Pay accounts to Samsung Pay.
For Chase Pay customers who link their account to Samsung Pay and make purchases, there is an opportunity to double dip on rewards by earning points from both their Samsung and Chase accounts.
Samsung Pay is limited to Samsung phones, but consumers still have the option to load other mobile wallets to Samsung devices, including retailer-specific choices such as Walmart Pay. For Samsung Pay to remain a selling point for Samsung handsets, the smartphone maker has actively sought partners to expand its app's funding options. Most recently, Samsung added PayPal as a partner to the Samsung Pay wallet.