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[Alpha Biz=(Chicago) Reporter Paul Lee] Samsung Electronics has declared individual negotiations with credit card companies on Samsung Pay. He expressed his intention to terminate the Samsung Pay contract with the App Card Council in the past and engage in individual contract negotiations between the credit card company and Samsung Pay.
According to industry sources on the 11th, Samsung Electronics delivered an official letter to its full-time credit card company that it would terminate its current contract with Samsung Pay. The official document states that the automatic extension of the Samsung Pay contract currently signed with the credit card industry will be terminated, and that the current contract is only valid until August 11, which marks three months. In addition, it is reported that Samsung Pay will negotiate with individual credit card companies in the future.
In November 2014, Samsung Electronics signed a contract with the App Card Council, which consists of Shinhan, Samsung, Hyundai, KB Kookmin, Lotte, and NH Nonghyup Cards, and started the domestic Samsung Pay service free of charge. Since then, BC, Woori, and Hana Card have joined and automatically extended.
But the atmosphere has changed recently. By allowing financial authorities to impose commission rates on credit card companies, not merchants and consumers, in the process of interpreting voters to introduce Apple Pay, Samsung Electronics, which has been providing services free of charge, has provided a basis for imposing Samsung Pay's commission rate.
Samsung Electronics acknowledged the termination of the contract to the credit card company, but denied the fee. "It is true that we will terminate the contract concluded through group negotiations in the past, but we have not decided whether to pay for it or not," a Samsung Electronics official said. "We are currently reviewing contracts in various ways in consideration of various factors in the market."
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
