Samsung to Launch U.S. Credit Card with Barclays, Challenging Apple Card
NEW YORK – Samsung Electronics is moving forward with plans to enter the U.S. credit card market, partnering with Barclays to launch a new card leveraging the Visa network. the move signals Samsung’s ambition to expand beyond consumer electronics and establish a extensive digital financial platform, mirroring Apple’s foray into financial services with the Apple Card.
The forthcoming card will allow consumers to accumulate “Samsung Cash” points on purchases – including Samsung products like smartphones, TVs, and home appliances – and transfer those points directly into Samsung’s high-interest savings account. This strategy aims to drive brand loyalty and long-term product sales by incentivizing customers to remain within the Samsung ecosystem.
Samsung is also exploring additional financial products,including digital prepaid accounts and “Buy Now,pay Later” deferred payment services. this builds on the existing functionality of Samsung Wallet (formerly Samsung Pay).
The partnership with Barclays comes after Samsung previously considered launching a credit card in 2018, but faced resistance from financial institutions. negotiations are now progressing due to aligned interests: expanding Samsung Wallet’s U.S. presence and Barclays’ growth strategy within the U.S. market.
The Apple Card, launched in 2019 with Goldman Sachs and Mastercard, offered up to 3% cashback and interest-free installment options. However, Goldman Sachs has experienced losses in the consumer finance sector, leading Apple to explore a partnership with JP Morgan Chase. This illustrates the challenges big tech companies face in achieving short-term profitability within the financial industry.
While detailed negotiations between Samsung and Barclays are ongoing and a planned year-end proclamation has been delayed,the launch represents a meaningful step for Samsung as it seeks to integrate financial services with its existing consumer base and leverage consumer data for a elegant rewards program. The long-term success of the venture, however, remains subject to profitability hurdles and regulatory considerations.
© TokenPost, unauthorized reproduction and redistribution prohibited.
