Samsung, PayPal Tap Fingerprint Technology In Response To Apple
By Christine Kern, contributing writer
Business Korea reported that Samsung Electronics is working with PayPal to add simple payment functions to its smart watches. Rumors suggest that they might reveal a simple payments-enabled smart watch at Mobile World Congress (MWC) 2015, the world’s biggest mobile exhibition to be held early next year.
A Samsung-PayPal smartwatch under development with mobile payment fingerprint-identification technology would increase the ability to simplify payment authentication on a device with limited space for a long PIN or password.
The fingerprint technology would be provided by Synaptics. The partnership shows how with both Apple and Samsung integrating fingerprint scanning onto devices, options for simplified payment authentication are increasing, regardless of the device.
“Samsung announced a partnership with PayPal with the introduction of the Galaxy S 5 in February 2014,” said Chris Donohue, of public-relations firm MWW. “The smartphone’s built-in fingerprint sensor enables users to quickly sign into PayPal and easily make secure mobile payments.”
“Galaxy S 5 users can quickly sign into PayPal and easily make secure mobile payments with a quick touch using the fingerprint sensor,” he said. “Partnering with PayPal for secure mobile payments was important because they are a leader in the space with a large user footprint and a trusted consumer experience for a secure payment process.”
According to a high-ranking official at Samsung Electronics, “We are currently developing the smart watch equipped with fingerprint identification technology and relevant solutions through cooperation with PayPal, the world’s most renowned financial transaction service company, as well as Synaptics, a global company specialized in biometric verification. By the earliest, the third generation smart watch to be released early next year will have this new system in which payment is authorized immediately when users identify themselves through biometric sensors such as a fingerprint or login.”
The simple payment system provides users with promotional information of stores nearby based on the current location of users. Then users can choose products before actually entering the stores and make payments upon the receipt of the purchased products.
Transaction information and account balances can also be checked through text messages. Samsung Electronics plans to expand the service from 25 countries currently to over 50 countries worldwide.
Richard Bergman, CEO of Synaptics, said, “Since last year, we have been focusing on developing “swipe type” technology through which user verification is done upon swiping the fingerprint on A screen, together with Samsung Electronics and PayPay. However, starting from the second half this year, we will concentrate more on developing the area type payment system, which can work within a limited range such as with wearable devices. Wearable devices with fingerprint verification and relevant solutions will be released early next year