Samsung Electronics is set to introduce a new credit card in the U.S., positioning itself against Apple (NASDAQ:AAPL)’s well-known Apple Card. With tech companies looking to enter the financial services sector, the move is seen as a logical step by Samsung to not only enhance its consumer offerings but also to drive customer interaction with its ecosystem. Samsung’s ambition is likely driven by its quest to create a more integrated service for its existing Galaxy device users.
Samsung hasn’t always been successful in its financial ventures. Back in 2018, a similar credit card initiative stalled due to hesitations from banking partners. This time, however, Samsung is in advanced discussions with Barclays to provide the necessary support to launch this financial product. Historically cautious, the banking sector’s increasing interest in tech collaborations offers Samsung a favorable opportunity. Barclays’ collaboration aligns with its own aspirations to penetrate the U.S. credit card market further.
What is Samsung’s Latest Strategy?
The credit card initiative with Barclays represents more than just a financial product for Samsung. It’s expected to be integrated into Samsung’s Galaxy devices and digital wallet services, attempting to close the gap on Apple’s more established financial offerings. By leveraging the Visa network, the card will feature cash-back rewards, a popular incentive among consumers.
Why the Targeted Approach?
Aimed at Samsung enthusiasts, rewards from the new card can be deposited into a Samsung savings account, eventually providing credits for future Samsung device purchases. This approach can deepen brand loyalty, further drawing users into Samsung’s product and service ecosystem. With approximately 75 million Americans owning Samsung Galaxy devices, tapping into this market has the potential for significant returns.
Samsung’s strategy extends beyond a credit card. The company is reportedly investigating additional financial services, including prepaid digital accounts and improved savings schemes, as well as revamped buy now, pay later plans. These initiatives are seen as an effort to boost its digital wallet’s market presence.
“Our aim is to offer customers comprehensive financial services integrated into their daily tech use,” a spokesperson for Samsung stated.
Barclays appears eager to expand in the U.S. and seeks co-branded opportunities with tech firms, making the partnership mutually beneficial. Reports indicate that while Apple currently partners with Goldman Sachs (NYSE:GS) for its card, discussions with JPMorgan Chase signal potential changes ahead.
Despite earlier missed deadlines, officials are hopeful for an announcement by year’s end, marking a new chapter in Samsung’s financial service pursuits. The company recently partnered with Coinbase to incorporate cryptocurrency functionalities into its wallet, showing a willingness to diversify its financial service ventures.
“The ongoing shifts in tech and finance create unique opportunities for us,” noted a Barclays representative.
Samsung’s planned credit card venture in collaboration with Barclays reflects both the technological and financial industry’s trust in combined strategies for broader consumer engagement. As tech firms increasingly integrate with financial services, consumers can expect more diverse and personalized options tailored to their digital lifestyles.
