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Nine months after the deal was announced, Samsung Pay has finally added support for PayPal as a payment method for online and in-store transactions, according to Android Central.
Samsung Pay users must have the latest version of Samsung Pay to enable PayPal.
The move could help reduce fragmentation for mobile wallet users.
Fragmentation has been a problem for customers. In many ways, mobile wallets are unapproachable and overwhelming for consumers. Despite lagging adoption, the average consumer has the choice between phone-based NFC wallets, bank-based wallets, and individual merchant wallets for any number of retailers. That adds confusion about which wallet to use for consumers who might already be resistant to change, and may have further driven many of them back to more familiar payment methods.
Leveraging PayPal could reduce friction and streamline adoption for Samsung Pay users. Fragmentation is worst for Android users, because Android allows developers access to its NFC hardware so that they can build their own wallets, ultimately giving these users many contactless choices. For Samsung customers, which have both Samsung Pay and Google Pay on their phones in addition to other wallets, that fragmentation is particularly strong. Samsung Pay has lower adoption rates than its peer wallets — only about 15% of eligible users have enrolled, compared with 22% in Apple Pay. Entering a credential-sharing agreement — so that customers can automatically pay with their PayPal account, within Samsung Pay — allows Samsung to offer a familiar option. That reduces fragmentation for customers, limits choices, and allows them to more easily navigate the mobile wallet ecosystem, which could …read more
Source:: Business Insider