FinTech News
Samsung Pay Introducing Cash Back Offers
When it comes to mobile payments, there are several aspects that set Samsung Pay apart from more popular competitors such as Apple Pay. For one, while most mobile payments require vendors to opt-in and upgrade their hardware, Samsung Pay is designed to work almost anywhere, including legacy magnetic strip readers found at most retailers. Additionally Samsung Pay has sought to entice users by offering reward points on transactions made with the wallet option. Now the company is sweetening the deal even more by introducing cash back rewards in partnership with select retailers.
According to Business Insider, Samsung will reward users with 5% cash back when they use Samsung Pay on sites like eBay and at retailers such as Walmart. Samsung Pay users will be able to view available offers in the new Cash Back section of the Samsung Pay app’s home screen. Cash back earned can then be used via Samsung Pay on future purchases. Presumably this cash back would be available on top of any rewards offered by credit cards, although it’s unclear if users could “triple dip” by also utilizing third-party apps like Dosh or Ibotta as well (or if they’d even have overlapping offers).
In a blog post announcing the new offering, Samsung’s GM of services and new business Nana Murugesan wrote, “The app is now a cash register, a marketplace, and a piggybank.” He went on to note that the program was a win-win for both users and retailers, saying, “Our mobile wallet strategy is all about offering more choices for consumers and more opportunities for merchants. Cash Back creates a new channel for merchants to reach and reward consumers who are looking for great deals.”
Incidentally this wasn’t the only announcement Samsung Pay had about its rewards program. It also unveiled plans to give users the option to purchase additional rewards points in order to snag deals they’re just shy of earning. This scheme is akin to frequent flier miles that can often be topped off for a price. A screenshot included in the Samsung blog posts suggests 500 points will sell for $2.99, 1,000 for $5.99, etc. all the way up to 10,000 for $49.99.
With these features, it’s clear that Samsung Pay is looking to keep users engaged with their product. That strategy has seemingly paid off so far, with BI suggesting that Samsung Rewards was responsible for Samsung Pay’s 49% user increase. Addtionally Samsung Pay’s engagement levels exceed those of rivals — although its wide acceptance is likely also a factor in that stat. Regardless, Samsung’s introduction of cash back is a clever idea and one that’s likely to help drive adoption of their service. Whether that translates to greater mobile payments usage overall remains to be seen but perhaps other wallets should follow Samsung’s lead and make using mobile wallets a bit more rewarding.
