Report: Samsung Pay Could Seize 49% Market Share In Asia In 2016

According to latest estimates from Hyundai Securities Co., Ltd., Samsung Pay is likely to take 49% shares in Asian markets in 2016 and will emerge as major service in global Smartphone payment gateway market, ETNews reported.

Samsung Pay’s growth is being facilitated by China’s UnionPay and Alibaba. UnionPay controls 73% of Asian markets and is planning to roll out Samsung Pay in China next year. Samsung’s partnership with UnionPay will expand its coverage considerably as latter can be used in 150 countries and at 26 million affiliated stores. On the other hand, Samsung has also joined forces with Alibaba, which controls 75% of Chinese e-commerce markets.

In addition, the rise in the number of Samsung Smartphone models that have Samsung Pay is also a contributing factor. This year Samsung Pay was available on only 4 models: Galaxy S6, S6 Edge, S6 Edge Plus, and Galaxy Note 5. However, the South Korean tech giant is planning to bring Samsung Pay to other models too next year to quickly expand influence of Samsung Pay.

Hyundai Securities Co., Ltd. estimates that 200 million Samsung Smartphones will have Samsung Pay in 2016 considering the fact that it put out over 300 million phones this year.

Samsung Pay’s total members crossed 1 million-mark in October and are expected to surpass 2 million this month. Number of accumulated payments also surpassed 10 million.

The service has become successful in South Korea and the company is planning to enter foreign markets such as China, Europe and others in first half of 2016.

“Because Samsung Pay has quickly settled itself in South Korea, it is expected that it will expand towards Chinese and the U.S. markets.” said Kim Chul-young who is a researcher for Hyundai Securities Co., Ltd. “Cellphone payment service businesses and module businesses will also benefit from this.”