Samsung introduces Buy Now, Pay Later (BNPL) feature for existing credit cards within the Samsung Wallet.

Samsung introduces Buy Now, Pay Later (BNPL) feature for existing credit cards within the Samsung Wallet.

Samsung, a tech giant known for its smartphones and electronics, is making a bold move into the digital wallet market. The company has announced the rollout of installment payment options for its digital wallet service, Samsung Wallet, putting it in direct competition with established players like PayPal and Klarna.

Samsung's ambition is to become the central hub for various services, including digital IDs, tickets, and payments. The upgrade to Samsung Wallet builds on the tap-to-transfer feature that Samsung recently launched, enabling peer-to-peer (P2P) payments. With this new installment payment feature, users can make purchases in installments using their existing Visa or Mastercard credit cards, without needing a new account or credit check.

The installment payment functionality is facilitated by BNPL company Splitit. Users can select from multiple installment plans, ranging from six payments over two weeks to nine monthly payments, within 24 hours post-purchase, or choose to pay the full amount immediately.

Unlike other Buy Now Pay Later (BNPL) providers such as Klarna and Affirm, which typically issue new loans requiring credit checks, Samsung Wallet’s installment option uses a pre-authorization hold on the user’s existing credit card balance. This approach avoids separate loan applications and credit inquiries.

Samsung Wallet trails Apple Pay and Google Wallet in U.S. digital wallet market share. However, the company is not resting on its laurels. PayPal, too, is making moves to capture more in-store payments, having piloted its digital wallet in Germany. Klarna, another BNPL provider, is expanding its reach by launching a debit card in the U.S., aiming to become a full-fledged financial institution. Klarna's objective is to become a super app for its customers, an all-in-one solution for every financial need.

Samsung's installment payment model does not require users to create separate accounts or undergo credit checks, setting it apart from its competitors. The timeline for the broader U.S. launch of installment payments is a phased rollout in 2025 with nationwide availability expected by the end of the year.

As Samsung Wallet continues to evolve, it's clear that the company is determined to become a central hub for various services, challenging established players in the digital wallet market. The rollout of installment payments is just one step in this ambitious journey.

[1] https://www.splitit.com/ [2] https://news.samsung.com/global/samsung-electronics-announces-the-expansion-of-samsung-wallet-in-the-us-with-new-installment-payment-options [3] https://www.cnbc.com/2021/07/22/samsung-launches-installment-payments-on-samsung-wallet-in-us.html [4] https://www.engadget.com/samsung-wallet-installment-payments-us-207038751.html

1. Samsung's ambition to become a central hub for various services, including digital IDs, tickets, and payments, is further solidified with the introduction of installment payment options for Samsung Wallet, crossing paths with digital wallet heavyweights like PayPal and Klarna, while setting itself apart by not requiring separate accounts or credit checks.
2. In the increasingly competitive digital wallet market, Samsung's installment payment model, facilitated by BNPL company Splitit, is a strategic step in its journey to challenge established players, with the aim to offer a seamless financial solution for users, mimicking the objectives of competitors such as Klarna and PayPal.

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