Samsung Pay

Samsung wants its mobile payment system, Samsung Pay, to replace the plastic cards in your wallet.

It works in almost all stores -- including those that use older magnetic-stripe point-of-sale terminals -- without merchants needing to opt in to any program or update hardware.

Where is Samsung Pay available?

It's currently available in the US, the UK, South Korea, China, Australia, Brazil, Canada, Singapore, Spain, India, Hong Kong, Malaysia, Puerto Rico, Russia, Sweden, Switzerland, Thailand and the United Arab Emirates.

Lexy Savvides/CNET

What phone/bank/card/carrier do I need?

Samsung Pay works with the Galaxy S8,S8 Plus, S7, S7 Edge, S6 Edge+, S6, S6 Edge, S6 Active and Galaxy Note 5. It is also available on the Gear S2 (only for transactions on NFC terminals) and Gear S3. 

All major carriers in the US support Samsung Pay: AT&T, Cricket, MetroPCS, Sprint, T-Mobile, Verizon and US Cellular.

You will need a Visa, MasterCard, Discover or American Express card. See the full list of supported banks and cards in the chart below.

Where can I use Samsung Pay?

Samsung claims that its system will work with almost all point-of-sale systems: NFC, magnetic stripe and EMV (Europay, MasterCard and Visa) terminals for chip-based cards.

However, it won't work with readers where you need to physically insert your card into a slot such as those found at gas stations and on ATMs.

In two weeks of using Samsung Pay in stores around San Francisco, I found that it was accepted almost everywhere. These included vendors using Square readers; NFC terminals in major chain retailers like Trader Joe's and Walgreens; and magnetic stripe readers in smaller stores. Merchants may still require you to sign a receipt for the transaction.

One point-of-sale system that did not work with Samsung Pay was an iPad-based payment terminal called Shopkeep. It recognized that I was trying to make a payment but it said that Samsung Pay wasn't a valid credit card. A Samsung spokesperson said, "We are constantly updating Samsung Pay to work with the vast majority of card readers -- unlike every other mobile payment option, which only work with a limited number."

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How Samsung Pay works (pictures)

What does the setup process involve?

Once the Samsung Pay app is installed, register your fingerprint on the device if you haven't done so already. The camera will launch so you can scan your credit or debit card. Check that the number, name and expiration date are all correct. Finally, the app will need to verify the card by sending you an SMS or email from your bank.

A total of 10 cards can be added to Samsung Pay.

How does it work?

Samsung Pay uses near-field communication (NFC) technology to process payments at tap-to-pay terminals.

However, the system also works with almost all other magnetic stripe terminals as well. These older systems are widely deployed throughout retailers in the US. Samsung Pay uses magnetic secure transmission (MST) when the phone is held against one of these registers. The phone emits a magnetic signal that simulates the magnetic strip found on the back of a credit or debit card.

In 2015 Samsung acquired mobile payment company LoopPay, which developed the specific MST technology used for Samsung Pay.

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How do I make a payment with Samsung Pay?

From the lock screen, swipe up from the small Samsung Pay bar just above the home button. Select the card you want to pay with, then place your finger on the home button to verify your fingerprint. Hold the back of the phone against the payment terminal.

If you are using a debit card through Samsung Pay, you may still need to enter the card PIN on the terminal. Once the payment is made you will get a notification that confirms the merchant name and the amount of your purchase. This information is also documented in the Samsung Pay app.