A few months ago, it was reported that while Samsung Pay was to be made available to consumers across the world in phases, Samsung would also launch Samsung Pay Mini, a payment system which would work on all devices, be it Android or iOS ones. As per the Korean Electronic Times, Samsung Pay Mini would work on all Android phones, iPhones and PCs. Since the percentage of online transactions on Samsung Pay was only around 20 per cent, Samsung wanted to increase it by launching a new payment platform exclusively for making online payments.
“By releasing SamsungPay Mini, Samsung Electronics has completed a versatile platform that absorbs online and mobile payments. Besides of online payments, SamsungPay Mini will be a catalyst for Samsung Electronics in tying together variety of additional businesses,” said a source to the Electronic Times.
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However, Samsung has now confirmed that Samsung Pay is now ready and will be included in 'all' Galaxy phones which will launch next year, including the budget Galaxy J series phones. To ensure this, Samsung will add fingerprint scanners in all of it's upcoming smartphones and consumers will thus be able to make use of Samsung Pay to make contactless transactions, no matter which Galaxy phone they will use. Samsung Pay will come pre-installed in all Galaxy phones so that users will be able to start using them instantly.
As far as Samsung Pay Mini is concerned, the platform may also launch in the first half of 2017 and will enable non-Galaxy phone users and iPhone users to make contactless payments. The advantage of Samsung Pay and Samsung Pay Mini is that they are based on a Magnetic Secure Transmission (MST) system which generates a magnetic field that links up with that of the card readers to facilitate the flow of information and which works in around 90 per cent of American sale terminals.
Samsung Pay also makes use of MasterCard's MDES technology which enables tokenization of credit, debit, co-branded, prepaid and small business cards for use in e-wallet services. Samsung has also acquired wireless payment system LoopPay which can transmit stored credit card information to magnetic card readers to ensure smooth payments.
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In August, Salvador Mendoza, a security researcher, demonstrated via a YouTube video that tokens generated by Samsung Pay to make payments can be easily predicted. Once stolen, such tokens can be used to make fraudulent transactions without the knowledge of the account holder, just like someone getting hold of your debit card and PIN and making transactions in a shop.
Mendoza didn't get his hands on a bunch of tokens yet to be issued by Samsung Pay but said that the tokenization process happens in such a way that anyone can predict their codes. The stolen tokens can then be used to make contactless payments even in regions where Samsung Pay is not yet available. He sent over a token to his friend in Mexico who then went on to make a purchase using magnetic spoofing hardware. It remains to be seen if Samsung took note of the vulnerability of Samsung Pay as demonstrated by Mendoza and if they've corrected it as yet.