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Samsung plans to let US users pay online with Samsung Pay, expand it to lower-priced smartphones soon

Samsung Pay plans to enable U.S. online shopping in 2016  —  Samsung Electronics Co plans to expand its fledgling mobile payment service in the United States next year …

Reuters Nandita Bose

Context & Ripple Effects

Samsung Pay reached the U.S. only months ago as a flagship-only service: it launched in September on the Galaxy S6, S6 Edge and Note 5, worked solely on 2015 Galaxy flagships with no Verizon support, and arrived after a summer of rollout promises for Korea, China and Europe (announced in June). The plan to open U.S. online checkout in 2016 extends that in-store bet to e-commerce — a direction Samsung later formalized through MasterPass-based online purchases and location-based coupons.

First-order effects

  • U.S. shoppers gain a way to check out at online merchants with Samsung Pay rather than re-entering card details, and owners of cheaper Galaxy models stop being excluded from the wallet entirely.

Second-order effects

  • Card issuers already in the wallet — Bank of America, Citi, Amex and U.S. Bank — get transaction volume beyond point-of-sale terminals, while merchants face pressure to accept a second mobile wallet alongside Apple Pay.

Third-order effects

The trend: Mobile wallets are expanding from flagship-exclusive tap-to-pay into full financial platforms spanning web checkout, mid-tier hardware and eventually branded cards.