Samsung is stepping into personal finance services, offering galaxy device users a new, fee-free Samsung Money cash management service and debit card, which will be available later this summer. The company shared details of its service, which is provided through a partnership with online personal finance company SoFi, on Wednesday. Its debit card will be available through MasterCard in the United States and will be free of charges, including fees related to overdrafts and transfers, and will be used through certain ATMs in the United States.
Samsung Money users will be able to check their balance, view past statements and search for transactions through the Samsung Pay app. They will also be able to tag suspicious activity, suspend or restart consumption, freeze or unfreeze their cards, change their PIN codes, and specify their trusted contacts, all of which can be done through the app.
Although the service is mostly virtual, it will also have a physical card without a card number, like Apple Card, without a card number. Samsung is the latest technology company to expand into personal finance. Instead of offering credit cards like Apple did, Samsung chose a debit card. A Federal Reserve study reported that in the United States, two out of every three bank card transactions are made through prepaid and non-prepaid debit cards. But the same study found that credit card payments are worth nearly 30 per cent more than debit card payments.
Samsung Money has some limitations. First, there is currently no way to add in-kind cash to the account and there is no cashback option. Users will receive Samsung Points Awards, which can be used in Samsung stores and other partners. Galaxy users with at least 1,000 Samsung Bonus Points will be able to redeem them for $5, which will be credited to their Samsung Money account.
This debit card marks the latest development in Samsung Pay. Samsung is following in the footsteps of Apple and Google by offering credit or debit card services to build customer loyalty amid fierce competition from smartphone customers.