Samsung Pay has 2 parts
1) NFC (Contactless EMV ISO 14443 stuff)
2) MST (Mag Stripe Emulation)
Both “could” work in the new Google world. But Samsung does not seem to be aware of the new Android efforts to build an organic security solution within Arm’s TrustZone that completely steps on the proprietary work they did (mostly with Knox). For background, see the following articles
– Android L vs Samsung (see this article)
– Samsung nixes Knox – Bob Eagan
– The BRAND NEW Google for Work Security Whitepaper
Historically, NFC wallets driven by GSMA’s SIM based approach require MNO support (keys for either SIM based or for embedded). SamsungPay was based upon a new software SE that ran within its own proprietary security architecture.
Problem is that Google’s new Android M steps on Samsung’s security architecture. Both are claiming the same space.. Sorry I can’t be more specific.. I’m almost 50 now and have lost most of my real skills.
Now Samsung could redesign its wallet, give up its security architecture and run within Google’s HCE environment. Samsung pay would operate as Google wallet does.. at Parity. But Samsung is not currently running in this model.. Samsung could also launch a loopPay only wallet that works in this model..
Why are Google and Samsung so focused here on payments and security!!? See my blog on Brokering Identity, and Authentication in Value Nets. The key to future profitability within mobile is about managing interaction between the physical and virtual world… security, identity and authentication is EVERYTHING.
Forget about technology.. here is the real problem
Let’s assume that Samsung solves ALL of the technical issues above and now SamsungPay works on all Android devices. Everyone knows that MNOs decide what gets pre-installed on the phones they subsidize (even Apple). Six weeks before MWC, Google made a strategic deal with the US MNOs to buy ISIS in exchange for Android Pay (the new Google wallet) becoming part of Google Mandatory Services (GMS.. just like search and gmail). Part of this is also a new android registration flow that addresses THE KEY weakness of Android profitability.. it gets consumers to add a card and play account (Apple brilliantly required an iTunes… with accompanying credit card.. in launch of iPhone).
Samsung’s wallet could still work.. however IT IS NOT PRE LOADED.. so this is what the consumer would have to do (AFTER REGISTERING FOR ANDROID PAY):
1) Find out about Samsung pay
2) Install Samsung Pay
3) Register for Samsung Pay
4) Understand where they can use Samsung Pay
5) Wave it near the Mag Head reader
6) Then use Android pay for in-app and play purchases..
Forget about the technical issues. In a world where only 6% of iPhone 6 users have ever used mobile payments.. What Mobile wallet has ever succeeded without:
#1 MNO Support
#2 OS Support
#3 Merchant Support … PLUC
#4 An ACTIVE COMPETING WALLET in same phone
Samsung .. just drop it… !? there is no longer any revenue or data rights associated with it.