What is going on
Samsung has just launched its mobile wallet platform for storing digital IDs, credit cards, car keys and other essentials.
Why it matters
Smartphone manufacturers are trying to replace the physical wallet with digital alternatives. Google recently announced a similar revamp of its Wallet app, while Apple is adding new features to Apple Pay.
Samsung is the latest technology giant trying to replace your physical wallet with a digital wallet that resides on your phone. On Thursday, the company launched Samsung Wallet, a new mobile wallet for storing digital keys, boarding passes, ID cards and credit cards.and have announced major updates to their own virtual wallet platforms in recent weeks.
Samsung earlier in February announced its mobile wallet alongside the, but didn’t launch the platform until Thursday. Samsung is merging two existing services to create Samsung Wallet. The app combines its mobile payment service for storing payment cards and vaccination information, and Samsung Pass, which manages passwords and login information for apps and websites.
The unified app signals an expansion of Samsung’s efforts to make its service more competitive with those of Apple and Google. Samsung Wallet launches via an app update, andowners can migrate their information directly from the Samsung Wallet and Samsung Pass apps.
Samsung Wallet will support official forms of identification later this year, such as driver’s licenses and student IDs. Google also announced in May that it is working with governments to include IDs in Google Wallet. Apple Wallet al supports virtual IDs in different states†
Samsung also wants its wallet app to act as a hub for digital keys to your car and home, functionality that is already available on the iPhone† The company says it is working with nine home security companies on virtual home keys, and Samsung Wallet will also integrate with the company’s SmartThings platform. As for car keys, Samsung Wallet supports digital car keys for select BMW, Hyundai and Genesis models. Korean Air also becomes Samsung’s first partner for digital boarding pass storage.
In addition to storing traditional payment methods such as credit, debit and loyalty cards, Samsung also allows users to manage their cryptocurrencies from the new Wallet app. The entire platform is protected by Samsung’s Knox security software.
Americans are increasingly embracing the idea of replacing their physical credit cards with digital ones. According to a 2021 report by eMarketer†
Now tech companies are developing more elaborate alternatives to the traditional wallet, a mission that Google and Apple both made clear at their recent press events. “With Apple Wallet, we’re working hard toward our goal of replacing your physical wallet,” Corey Fugman, Apple’s senior director for Wallet and Apple Pay, said at the company’s Worldwide Developers Conference last week.
Adoption is expected to take off in the coming years. One in two people is expected to use a mobile wallet by 2025, according to a report from July 2021 from financial technology company Boku and market research firm Juniper Research. The launch of Samsung Wallet is also another sign that tech companies are increasingly relying on apps and services to retain existing users.