Samsung is confident even though its payment service comes almost a year after Apple's. Unlike Apple Pay, Samsung's can work with the magnetic-strip card readers that are common in stores and restaurants.
On top of that, Samsung won't charge banks and credit-card issuers transaction fees.
"They should have a larger contingent of financial institutions in a shorter period of time," said Richard Crone, chief executive officer of mobile-payment researcher Crone Consulting LLC. "The issuers are using this to pressure Apple to renegotiate their deal."
Samsung said it is teaming up with American Express Co., Visa Inc. and MasterCard Inc., as well as Bank of America Corp., JPMorgan Chase & Co., Citigroup Inc. and U.S. Bancorp, among others, for the service.
"It's not about being first in the market, but creating compelling technology," Injong Rhee, executive vice president at Samsung Electronics, said at an event in New York where Samsung unveiled the new service and phones.
At the event at Lincoln Center's Alice Tully Hall, Samsung also showed a brief video clip teasing its next smartwatch. The short video ended with the release date: Sept. 3.