Tag: mobile payments

  • Macau Police Uncover 33,000 Fake Sites as Android Trojans Hit Wallets

    Macau Police Uncover 33,000 Fake Sites as Android Trojans Hit Wallets

    Malware syndicates across Southeast Asia are deploying fraudulent gambling applications to intercept digital wallet transactions, targeting systems run by Malaysian payment networks Touch ‘n Go and DuitNow. Instead of processing transactions through secure banking rails, malicious overlays draw counterfeit payment interfaces directly over mobile screens to capture personal identification numbers.

    The scale of the threat infrastructure emerged when INTERPOL concluded Operation Synergia III in March, taking down 45,000 malicious IP addresses and servers worldwide. Within that total, police in Macau alone uncovered more than 33,000 fraudulent websites operating as fake casino platforms and spoofed portals designed to harvest personal and financial credentials.

    Recent security investigations demonstrate how threat groups use localized mobile tools to penetrate devices across the region. In October, cybersecurity firm ThreatFabric documented Hirudo, an Android trojan that triggers a purchase before projecting an interface carrying counterfeit Malaysian bank and wallet branding.

    Spoofing Local Checkout Interfaces

    ThreatFabric documented a trojan called Hirudo, which operates by initiating a transaction and generating a transparent graphical overlay across the phone screen. The counterfeit screen replicates the checkout branding of major Malaysian banks and electronic wallet providers, intercepting the user’s personal identification number before presenting a falsified success notification.

    The mechanics exploit payment habits developed in regional commerce. Malaysian shoppers expect deposit screens to show Touch ‘n Go or DuitNow interfaces, rather than standard payment cards. In a review of PIN-approved e-wallet casino payments, a Malaysian comparison site that deposited with two local wallets at each operator found Touch ‘n Go accepted at all ten it listed and DuitNow at eight. Genuine transactions process verification inside the standalone payment app, with the merchant receiving merely a reference code.

    Hirudo alters that structure entirely. The malicious package renders the credential entry form within the host program itself. When a transaction completes, the software sends a forged confirmation notice back to the lure interface, even though no legitimate funds transfer occurred through the wallet system.

    Surveillance Disguised as Consumer Tools

    Technical analyses reveal identical delivery models elsewhere in Southeast Asia. Security firm PT ITSEC Asia dissected an Android application named Gacor Max, distributed across Indonesia via direct messaging campaigns that routed users to spoofed Google Play storefronts. The name borrows Indonesian slang for a slot machine paying out cash.

    The code requested immediate access to phone states, cameras, and local media storage before reaching any interactive interface. Devices running the package maintained persistent background wake locks, keeping the malware operational while freezing on an emulator loading screen. Similarly, threat monitors at Infoblox traced a fraudulent program named Universe Browser, circulated across regional gaming sites by a group tracked as Vault Viper. While marketed as a privacy platform, the software redirects web traffic through external servers in China and executes background payloads.

    The Proliferation of Interface Overlays

    Interface overlays have become standard infrastructure for financial malware operating across regional digital ecosystems. Group-IB documented RemControl, an Android banking threat that projects full-screen replicas of legitimate banking apps over consumer software. Related tracking of ToxicPanda revealed fake login interfaces designed for 349 financial institutions operating in 16 markets.

    For mobile commerce operators, these intrusions undermine user confidence at checkout. Digital wallets rely on end-to-end user confirmation, directing customers never to share one-time passwords or input credentials outside designated application boundaries. When third-party apps simulate checkout dialogues, the security perimeter established between merchants and payment gateways breaks down on the local client device.

    The current malware expansion builds on structural distribution networks uncovered during INTERPOL’s Operation Synergia III, which dismantled cross-border cyber infrastructure earlier this year. As regional mobile wallet adoption accelerates across consumer services, threat groups continue shifting away from general phishing links toward targeted, localized mobile payloads disguised as consumer entertainment software.

  • Asia Pacific Takes 34 per Cent Share as Social Commerce Surges Toward 2.7 Trillion Dollars

    Asia Pacific Takes 34 per Cent Share as Social Commerce Surges Toward 2.7 Trillion Dollars

    Social commerce spending reached 2.11 trillion dollars in 2026, with Asia-Pacific accounting for 34.15 per cent of global turnover as live video selling consolidated its base across China and Southeast Asia.

    Worldwide sales through social networks will reach 2.72 trillion dollars in 2027 and expand at a compound annual rate of 28.45 per cent through 2032 to hit 9.51 trillion dollars, according to industry market projections.

    Smartphones generated 91.82 per cent of all social transactions in 2026. Video commerce proved the single largest sales format, commanding 42.62 per cent of platform revenue. Business-to-consumer storefronts took 54.79 per cent of total turnover, while consumer-to-consumer resale gained ground as the quickest expanding segment with an expected annual expansion rate of 33.1 per cent through 2032.

    Southeast Asia Ties Video Direct to Payment Rails

    In-app checkouts across Southeast Asia depend on integrations with domestic banking systems. TikTok Shop activated direct video shopping across Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam, relying on settled checkout behavior to lift transaction sizes.

    Malaysia logged 18.4 billion electronic payment transactions in 2025, up 25 per cent year over year across bank cards, e-money, FPX, and DuitNow wallets. TikTok Shop Malaysia reported that live broadcasts and short video feeds each generated roughly one-third of its total gross merchandise volume in 2026. Rather than relying entirely on marathon livestreams, the platform draws steady volume from recorded clips linked directly to product listings.

    Apparel captured 27.2 per cent of overall social transactions in 2026, though beauty and personal care expanded fastest with a projected 32.5 per cent annual growth rate through 2032. For fast-moving consumer goods sold via TikTok Shop Europe, personal care products constituted 41 per cent of value sales in the year ending March 29, 2026.

    China Livestream Operators Tap Direct Retail Stock

    China retained the deepest social commerce footprint, where physical goods purchased online represented 26.1 per cent of all retail sales of consumer goods in 2025. The country recorded 660 million live-commerce users that same year, while transaction values across livestream platforms rose more than 10 per cent.

    Operating live broadcasts in China now functions as an inventory clearing engine tied directly to central retail supply chains. Alibaba Group ran livestream operations across Taobao and Tmall during the 2025 mid-year 6.18 shopping event, while PDD Holdings lifted third-party merchant services revenue by 9.7 per cent in 2025 through group buying on Pinduoduo. Because quarter of consumer retail already moves digitally across Chinese cities, livestream studios rely on direct merchant enterprise resource software rather than third-party affiliate middlemen to fulfill bulk volumes.

    In India, direct sellers moved conversational trade into WhatsApp and mobile messaging applications during fiscal 2025. Flipkart Group set plans in June 2026 to bring creator merchandising across Instagram following an earlier rollout on Facebook, pushing catalogue-linked video across Meta platforms.

    Margin Squeeze Shifts Focus to Fulfillment and Ads

    Customer acquisition costs on mature platforms are putting pressure on merchant margins. Meta reported a 12 per cent year-over-year increase in its global average ad price during the second quarter of 2026, with ad prices in the United States and Canada climbing 20 per cent.

    Rising ad rates penalize sellers whose stores fail to convert first-time viewers into immediate checkouts. Operating costs also diverge sharply at the warehouse door. Merchants utilizing TikTok Shop fulfillment services in Britain face tiered holding expenses based on item volume, storage duration, and weight, transforming inventory dwell time into an immediate cash drag even when affiliate commissions are payable only after a completed purchase.

    For established consumer brands, social media operates as a parallel sales outlet rather than an exclusive home. Hairbrush brand Wet Brush restarted direct online sales in the United States in September 2025 and launched a storefront on TikTok Shop, preserving shelf space in traditional retail chains while funding dedicated social media inventory.

    Privacy Barriers and Platform Scrubbing Tighten Rules

    Regulatory mandates across Asian and Western trade hubs are restricting how platforms process customer purchase trails. Singapore enforces consent baselines under its Personal Data Protection Act, limiting unauthorized merchant data sharing, while the European Union Digital Markets Act limits gatekeepers from combining cross-service customer profiles without explicit consent.

    Operating requirements are hardening in mainland China. The State Administration for Market Regulation and the Cyberspace Administration of China introduced updated livestream-commerce measures on February 1, 2026, requiring platform operators to verify host identities, preserve risk logs, and track all transaction records.

    China closed public consultations on its revised draft E-Commerce Law on August 4, 2026, locking in statutory obligations for marketplace hosts. Retailers across the region now face tighter platform record audits as authorities scrutinize livestream promotions and merchant claims.

  • GCash Allocates 60% of IPO Cash to Challenge Informal Lenders

    GCash Allocates 60% of IPO Cash to Challenge Informal Lenders

    GCash operator Mynt will deploy 60 percent of its primary IPO proceeds into consumer lending, targeting the informal loan market across the Philippines.

    The digital wallet counts 41.5 million monthly active users, but only 7.5 million borrow through its platform. Converting the remaining 34 million registered users into active credit customers forms the central growth pitch to equity investors ahead of listing.

    Mynt runs its credit operations through Fuse Financing, offering micro-credit products like GLoan Sakto for sums as low as 100 pesos and Borrow Load for 20 pesos. More than 90 percent of the user base falls within the lower C2DE socio-economic brackets, where daily cash flow needs mirror sachet retail buying habits. Frost & Sullivan data compiled for the listing shows roughly 40 percent of borrowing Filipino adults relied on informal credit in 2025, including unregulated 5-6 money lenders who demand 20 percent nominal interest rates on short-term advances.

    Sachet credit replaces street lenders

    Digital wallets across Southeast Asia have shifted from simple payment rails to balance-sheet lending to offset margin compression on transfers and merchant settlements. Singapore-based Grab, Indonesia’s GoTo and regional digital banks all pursued similar transitions, yet few command the domestic user dominance GCash holds in its home market. By pushing loan sizes down to 100 pesos, Fuse Financing mirrors the Philippine retail distribution model of selling daily goods in small packets.

    This micro-lending model shifts customer acquisition costs almost to zero because borrowers already transact on the core app. Traditional Philippine banks struggle to service sub-1,000-peso tickets profitably due to branch overheads and manual underwriting costs. GCash automates that screening using its proprietary GScore credit assessment and an automated voice bot called GINA to manage collection calls.

    Rising share of digital lending revenue

    Lending generated 28.52 billion pesos in 2025 after expanding at a two-year compound annual rate of 67.1 percent. That performance lifted credit from 35.8 percent of adjusted revenue in 2025 to 41.8 percent during the first half of 2026. Payments generated 50.34 billion pesos, or 63.2 percent of 2025 revenue, but lending expansion now drives top-line momentum as total loan assets hit 70.5 billion pesos in June 2026.

    “There’s money in serving them,”

    Mynt president and chief executive Martha Sazon told investors at an October 6 briefing, pointing to unbanked consumer segments as the primary engine for the next growth cycle.

    Credit loss provisions and default risks

    Rapid loan book expansion brings balance sheet volatility. The company booked 12.62 billion pesos in provisions for credit losses in 2025, absorbing 44.3 percent of its lending revenue that year. First-half 2026 provisions reached another 7.93 billion pesos.

    Non-performing loans stood at 4.9 percent in June 2026, falling from 7.5 percent in 2025 and 9.2 percent in 2023. Fuse Financing chief executive Tony Isidro told brokers he remains comfortable holding delinquent loans within single-digit bands while migrating borrowers away from informal street lenders. Managing those defaults will dictate whether lending remains an earnings generator or becomes a capital drag as net income growth slowed to 7.3 percent year-on-year in the first half of 2026.

    Premium valuation on the trading floor

    The company priced its initial public offering at 6.60 pesos per share, implying an equity valuation of roughly 442 billion pesos. That prices Mynt at 25.7 times its 2025 net earnings, commanding a premium over global peers such as PayPal and Brazil’s Nu Holdings. Institutional demand oversubscribed the offer during the retail bookbuild.

    Market participants will test that valuation when shares begin secondary trading on Tuesday, October 20 under the ticker symbol GCASH.

  • Seoul launches zero-fee digital payment system

    Seoul launches zero-fee digital payment system

    The city of Seoul has moved to ease the transaction-fee burden on small and medium-sized businesses (SMBs) by launching the “Zero Pay” zero-fee digital payment system. The system has been set up in partnership with banks and fintech firms in response to shop owners paying excessive proportions of their monthly sales into credit-card transaction fees.

    Twenty banks and digital payment firms – with the notable exclusion of KakaoPay, South Korea’s most popular mobile payment service – are participating in the zero-fee digital payment system, which is digital-wallet activated via QR codes through which money is transferred directly between bank accounts.

    Businesses with annual sales less than KRW800 million (US$708,820) will not be charged transaction fees, while those with higher takings will be charged fees well below the credit card industry standard of 2.2 per cent.

    “If consumers and citizens use Zero Pay whenever possible, it will be a great help for self-employed businessmen,” said Seoul city mayor Park Won-soon.

    Around 16,750 stores have signed on to the Zero Pay program so far.

  • Security concerns inhibiting m-payment adoption in Hong Kong

    Security concerns inhibiting m-payment adoption in Hong Kong

    More than half (53%) of Hong Kong residents polled during a recent survey conducted by the Hong Kong Internet Registration Corporation (HKIRC) said concerns over cybersecurity and privacy risks are major barriers to greater adoption of mobile payments.

    Other barriers that have been cited in the survey include technical instability and the lack of support for mobile payment from most local merchants in the city

    In speaking about the survey, HKIRC deputy CEO Bonnie Chun allayed the primary fear of using mobile payment, pointing out that the government ‘has already put a lot of regulations in place to ensure the industry strictly follow their guidelines. We suggest the government promote its policies via different channels such as social media among others,” said Chun.

    She added that the government should keep on educating the public about the different ways of maintaining safe online hygiene such as changing one’s passwords regularly, using two-factor authentication, not using public Wi-Fi connections for making payment transaction and downloading mobile apps only from reliable sources.

    “Also, mobile payment providers should increase their transparency on how they handle personal data. They should try not to collect too much personal data during the registration process to increase users’ confidence.”

    Mobile payment gets a foothold in Hong Kong

    The survey polled 1,200 residents in the city between the ages of 18 and 65, who belong to various industry sectors.

    Survey results showed that mobile payment is now gaining a foothold in the city with 23% of respondents using mobile payment and is now in the top three payment methods in Hong Kong after credit cards (37%) and Octopus Card (25%).

    While 93% of respondents between the ages of 18 to 25 have used it before, a high percentage – 77% – of older respondents aged 56 to 67 have also used mobile payments.

    More than a quarter of respondents or 28% have been using mobile payments two to three times a week. About 88% of respondents use their mobile phone for transactions of less than HK$500 ($64).

    The survey showed that respondents want to be able to use mobile payment in three areas: public transport, government bills and clinic,

    “The future of mobile payment in Hong Kong is very positive. When we start using mobile payment in public transport, people will become more familiar with it and the adoption rate will increase,” Chun said

  • M1 will launch Apple Pay in Singapore

    M1 will launch Apple Pay in Singapore

    The operator will allow its customers to use the mobile payment service to make purchases at M1 Shop outlets and branches.

    Apple has meanwhile revealed it has extended the reach of Apple Pay to include holders of credit and debit cards issued by five banks in the country – DBS Bank, OCBC Bank, POSB Bank, United Overseas Bank (UOB) and Standard Chartered Bank.

    The five banks combined account for more than 80% of credit and debit cards issued in the country.

    Apple Pay, which launched last month in Singapore, was previously only available to holders of credit cards issued by American Express in the nation.

    The service is currently available in six markets – Australia, Canada, China, United States, United Kingdom and Singapore, with planned launches for Hong Kong and Spain this year.

    The service can be used on Apple’s iPhone SE, iPhone 6s, iPhone 6s Plus, iPhone6, iPhone 6 Plus and Apple Watch devices for payments at physical retail outlets.

    Banks are likely hoping Apple Pay transactions will increase adoption of contactless payments and eat into a chunk of the small payments pie currently dominated by cash transactions.

    OCBC Bank Singapore is offering its credit and debit card customers a 3% rebate for Apple Pay transactions island-wide in the first month of activation, with a cap of up to S$15 ($11).

    UOB is meanwhile aiming to lift the S$100 transaction limit for contactless payments at all its POS terminals island by the end of next year. The limit has been removed from 2,000 of the bank’s 10,000 terminals so far.

    Figures from a recent MasterCard study have revealed an appetite for digital wallets among consumers in the Asia Pacific, with 19.5% using such wallets, a two-fold increase from two years ago.

  • Mobile money service launched in Bangladesh

    Mobile money service launched in Bangladesh

    Financial inclusion in Bangladesh just took a stride closer to reality with the launch of a new international remittance receiving service via a partnership between MasterCard, Western Union, bKash and BRAC Bank.

    The new service enables bKash’s registered customers to use their mobile phones to receive remittances from abroad directly into their bKash accounts.

    A subsidiary of BRAC Bank and a joint venture between BRAC Bank and Money in Motion LLC of USA, bkash serves the low income masses of Bangladesh to achieve broader financial inclusion by providing services that are convenient, affordable and reliable.

    With 70% of the population living in rural Bangladesh many of whom have no access to formal financial services, it is also the eight largest receiver of international remittances in the world. Under 15% of Bangladeshis are connected to the prescribed banking system whereas over 68% have mobile phones.

    World Bank South Asia Financial Inclusion Index 2014These phones are not only devices for talking, but can be used for more useful and difficult processing tasks. bKash was conceived primarily to use these mobile devices and the universal telecom networks to extend financial services in a protected manner to the under-served distant population of Bangladesh.

    By using the new service, bKash’s registered customers can receive remittances from every Western Union send market and channel directly into their bKash account, 24 hours a day.

    MasterCard’s Matthew Driver said: “This relationship is another step towards achieving our global commitment to make the financial system accessible to 500 million more people by 2020. Working with companies such as bKash and Western Union is crucial to taking advantage of the latest technology; digitizing money transfers and supporting financial inclusion efforts in the South Asia region and worldwide. The choice, flexibility and convenience of this new bKash service will help to expand financial inclusion to some of the most remote parts of this thriving nation.”

    Western Union’s Jean Claude Farah said international money transfers over mobile phones will accelerate financial inclusion in Bangladesh where there are currently more mobile phones than there are customers with bank accounts.

    In 2011, the Bangladesh Bank, the country’s central bank, issued the Mobile Financial Services (MFS) Guidelines and mandated that the model where MFS must be bank-led but also clearly indicated that partnerships with mobile operators must be forged to reach customers. The first two MFS providers to emerged as leaders early on were BRAC/bKash and Dutch Bangla-Bank/DBBL.

    Like many parts of developing Asia, financial inclusion is part of the government via the central bank’s strategic plan, aimed at ensuring these products meet the needs of the traditionally underserved segments of society. Among the services on priority list include expanding access to financial services to women, poor and rural populations; and formalizing financial services by promoting registered transactions.

  • Banks take up Visa Token Service

    Banks take up Visa Token Service

    An extra layer of security for mobile and digital payments has been introduced by Singapore’s United Overseas Bank (UOB) and Australia’s National Australia Bank (NAB).

    As well as making transactions safer, the new Visa Token Service also makes instore shopping easier.

    Credit or debit cards are no longer necessary under the Australian bank’s new mobile payment service,NAB Pay, which lets customers use their mobile phone for purchases.

    For UOB customers, the Visa Token Service has been integrated into the UOB Mighty digital wallet. It allows UOB Visa credit or debit card users to make contactless payments via an app on NFC-enabled Android smartphones at selected outlets in Singapore and overseas.

    Visa’s new technology replaces sensitive account information found on payment cards with a unique digital identifier or “token” that does not expose account details during the payment process. Tokenised cards are also domain controlled, meaning they link to the user’s phone or wallet application and are validated in real time by the global payment-processing platform VisaNet.

    Launched in the US, the Visa Token Service is being rolled out in several markets across Asia Pacific over the coming months. As payments shift from plastic to digital, Visa is working with financial institutions, merchants and technology partners to offer consumers a secure and easy way to buy.

    A key benefit of the service is that tokens do not carry the user’s primary account number, so there is less risk of storing them on mobile devices, online (eCommerce merchants) or in cloud-based mobile applications.

    Using ISO standards, the tokens can be processed and routed by merchants, acquirers and issues in the same was a traditional card payments.

    Tokens tied to lost or stolen mobile devices can be instantly reissued, and multiple tokens can be used for a single primary account, each tied to a specific device or service. Tokens can also be exclusive to specific merchants, mobile devices, transactions or transaction categories.

    VisaNet is capable of handling more than 65,000 transaction messages a second, with fraud protection for consumers and assured payment for merchants.

  • Smartphones outpace tablets in Asian eCommerce

    Smartphones outpace tablets in Asian eCommerce

    For the first time, 34 per cent of browser-based online transactions globally are now made on a mobile device, compared to slightly more than 30 per cent last quarter.

    And smartphones are starting to outpace tablets.

    These were key findings of the fourth quarter edition of the Mobile Payments Index by Global payments technology company Adyen, which tracks mobile payment data from browser-based transactions across its client base and monitors Asian eCommerce shopping patterns.

    It also found that many consumers in Asia are increasingly using mobile devices to shop online. This is being driven particularly by such major payments methods as Alipay, JCB and UnionPay. JCB had the highest share (54 per cent) of mobile payments on the Adjen platform, up from 47 per cent the previous quarter. Alipay increased to 44 per cent (up from 35 per cent) while UnionPay reached 31 per cent (from 23 per cent).

    “The checkout stage of the shopper journey is not the end, but the beginning of an on-going relationship with the consumer,” says Adyen Asia Pacific president Warren Hayashi. “Merchants with a frictionless mobile checkout experience are driving repeat traffic, especially in Asia.”

    For the first time, the index shows that smartphones have overtaken tablets as the preferred device for online shopping – 17.5 per cent on smartphone against 16 per cent on tablet, compared to 14 per cent and 17 per cent respectively the previous quarter.

    When it comes to mobile payments globally, the trend to use smartphones rather than tablets continues for the 10th consecutive quarter. Last quarter this share was up 2 per cent to 68 per cent on smartphone versus 32 per cent on tablet.

    Smartphone use far outweighed tablet in Asia, with 29.5 per cent of online payments on a smartphone compared to 4.5 per cent on a tablet.

    In terms of average transaction value, iPad led the way for the first time at $107, edging out not just smartphones but also desktop/laptop, the traditional leader (at $106). Following were Android tablets at $86, iPhone at $83 then Android smartphones at $73.

    Adyen has been tracking the evolution of mobile payments since June 2013. The index is based on its global browser-based mobile payment transaction data. It does not track in-app mobile payments. With its headquarters in Amsterdam and San Francisco, Adyen serves more than 4500 businesses, customers including Airbnb, Booking.com, Crocs, Dropbox, Facebook, KLM, Mango, Netflix, Spotify and Yelp.

  • Mobile payment race intensifies

    Mobile payment race intensifies

    From smartphone-makers to retail firms, more companies are jumping on the mobile payment bandwagon in a bid to take the initiative for hassle-free digital payments.

    As there is no single dominant player or set of standards yet, the mushrooming mobile payment market is flooded with more than 20 related applications in Korea and may look like a hodgepodge of technologies for some.

    Many industry officials, however, had a positive outlook on the fledgling market, anticipating that the mobile payment systems would further proliferate and one day kill plastic cards.

    “There will be a tenfold increase in the mobile payment services next year, and it is highly likely considering the great growth potential with most websites requiring online payment solutions,” forecast Park So-yeong, chief executive of electronics payment PayGate and chairperson of the Korea Fintech Forum, an organization for the financial technology sector.

    She added that the market needs a set of standards in order to enhance convenience for consumers, and small retailers that may want to adopt the contactless payment technology in the coming years.

    Users try to use mobile payment system Samsung Pay. (Samsung)

    Some said that the growing number of mobile payment apps ironically cause inconvenience due to the lack of standardized technologies, arguing new payment services will come and go until the emergence of strong market leaders.

    “Even Kakao, operator of Korea’s most used mobile messenger, has not been able to rule the mobile payment market,” said an industry source, adding that the firm’s KakaoPay takes up less than 10 percent of payments on Baedal Minjok, the largest food ordering app in Korea.

    Other mobile payment services providers include retail colossuses Shinsegae and Lotte, as also Internet giant Naver and LG Electronics.

    The Korean mobile payment market more than quintupled to 5.7 trillion won ($4.9 billion) in the second quarter this year from 1.1 trillion won in the first quarter of 2013, according to state-run statistics organization Statistics Korea.

    Highly considered as one of the potential market leaders, Samsung is gaining momentum to win the mobile payment race.

    After U.S. tech giant Apple launched contactless mobile payment system Apple Pay last year, Seoul-headquartered Samsung Electronics rolled out its own system in August.

    Despite its somewhat belated start, Samsung Pay has been garnering quite an upbeat response from reviewers and users around the world.

    Accumulative payments crossed the 100 billion won mark with the number of Samsung Pay subscribers exceeding 1 million in two months since its launch in Korea.

    Samsung Pay is often said to have a competitive edge over Apple Pay thanks largely to its better compatibility with the Magnetic Secure Transmission and Near Field Communications technologies.

    Apple Pay allows users to make purchases only with NFC terminals while Samsung Pay is compatible with both magnetic swipe and NFC terminals.

    “Some even say Samsung Pay is the last hope for the Korean tech giant’s mobile business unit, which is being squeezed hard between Apple in the premium handset segment and Chinese upstarts in the low end,” a market official said.

    The tech behemoth is also beefing up partnerships with credit card firms and banks to allow Samsung Pay users to use ATMs with the mobile service.

    Some of the global financial firms include Chase, Visa, American Express and MasterCard.

    Local investment firm BNK Securities anticipated the shipment of Samsung smartphones equipped with Samsung Pay worldwide will reach 22.5 million units — 11.4 million in Asia and 11.1 in North America — next year.

    The increasing popularity of the Samsung payment solution and the expanding mobile payment ecosystem has become a boon for Samsung’s partners and component makers for biometric sensors — used in smartphones to authenticate users.

    Among the beneficiaries are the Korea Information Certificate Authority, which develops user authentication solutions, and Amotech.

    KICA provides fingerprint identification solutions for Samsung Pay and the latter supplies chip modules used for the payment system.

    KICA’s share price doubled to 21,000 won in the two months that Samsung Pay was released, and is now hovering between 12,000 won and 14,000 won.

    It is also expected that Samsung would install its payment solutions in a variety of its products, including smart TVs, mid-range and low-end smartphones, running on the Tizen operating system.

    The Tizen OS has been jointly developed by a group of global tech firms including Intel.

    Fingerprint scanners will be more widely deployed in budget Samsung smartphones to beef up security of the mobile payment app.