The world's largest electronic payment network, Visa announced its partnership with Samsung Electronics to accelerate mobile payments using Near-Field Communication (NFC) Monday.
The global alliance will combine Visa's expertise in payments with Samsung's mobile device technology. The alliance of the two companies has the potential to significantly accelerate the accessibility of mobile payments globally.
"Samsung devices enabled with Visa payment functionality will no doubt be a powerful product offering - especially in markets where paying with a mobile device is becoming commonplace," said Jim McCarthy, global head of product, Visa Inc.
As part of the agreement, financial institutions that are planning to launch mobile payment program will be able to use the Visa Mobile Provisioning Service to securely download payment account information to NFC-enabled Samsung devices. Along with this, Samsung has agreed to load the Visa PayWave application into its mobile devices which features NFC technology.
The Visa PayWave is a small application that enables consumers to make "wave and pay" (contactless) payments using mobile devices.
"However, the key to making mobile payments broadly available all over the world is to offer financial institutions a secure way to provision millions of smartphones with payment account information - and that is exactly what Visa and Samsung are ready to deliver," McCarthy added.
NFC is the global communication standard that enables mobile devices to communicate securely with the payment terminal. A New York based market research and intelligence firm, ABI Research predicts that around 1.95 billion NFC enabled devices will be shipped in 2017.
This global alliance is a first of its kind between a leading NFC handset manufacturer and a largest electronic handset manufacturer.
"Samsung has been a pioneer in NFC devices and is again leading the way in enabling NFC-based mobile payments. The partnership with Visa represents a step towards a global mobile payment platform," said Dr. Won-Pyo Hong, President and Head of Media Solution Center, Samsung Electronics. "We believe that we have a strong value proposition for financial institutions that will ultimately allow consumer choice in NFC payments."
Visa will demonstrate the Visa PayWave for mobiles and Mobile Provisioning Service for financial institutions at Mobile World Congress in Barcelona.
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