Samsung has told their Wallet users that the service will be shutting down on 30 June to make room for Samsung Pay, the payment service that we first heard about back in March which will rival Apple Pay.
"On June 30 2015, Samsung Wallet will be discontinued except in Korea, as part of our long-term business strategy with Samsung Pay. Samsung Pay will be available in the US and Korea this summer," a spokesperson told V3.
In a statement posted on Samsung Wallet Partners, Samsung said that the Wallet will be discontinued due to poor adoption of the service. “Unfortunately, the usage rate of Samsung Wallet was not what anyone expected,” Samsung said.
V3 reports that Samsung Pay, the mobile payments service that will take on Apple Pay and Google Wallet when it launches this summer, will replace the Samsung Wallet, which is a digital wallet for virtual versions of loyalty cards, coupons and vouchers, rather than the full payments service that Samsung Pay offers.
Samsung Pay is similar to existing mobile payments systems which allow mobile phone users to make in-store transactions by enabling those with a MasterCard and a Samsung Galaxy S6 to make transactions with their mobile phone.
Samsung’s acquisition of start-up LoopPay has given them access to technology that works in 90 per cent of existing point-of-sale (POS) terminals, a feature which makes Samsung Pay different to other rivals such as Google Wallet and Apple Pay which only work with near-field communications technology.
News that Samsung will be entering the payments market in the summer means that Apple, Google and Samsung will soon be going head-to-head over the best contactless payment service.