Samsung wants to do more with payments than offer a virtual prepaid card. The company plans to grow Samsung Pay this summer by introducing a new “experience” that includes an “innovative” debit card supported by a cash management account. Details are only slated to arrive in the “coming weeks,” but it’ll have help from the financial startup SoFi.
It’s not a surprising move for Samsung. Apple has offered a credit card since 2019, while Huawei is following suit. Google is believed to be working on a debit card of its own. If Samsung doesn’t offer some kind of payment card, it might miss out if these cards turn out to be successful.
There’s also a pragmatic financial reality at work. Smartphone sales were already levelling off before the COVID-19 pandemic, and they’ve taken a huge hit as a result of the crisis. A payment card could give Samsung’s mobile division a reliable source of revenue that could offset the slump in its phone business.