Samsung is introducing its own "innovative" debit card this summer in an effort to compete against the Apple Card. The new card is the next step for Samsung Pay, which launched five years ago. Apple Card rolled out last year, while Google is reportedly working on one, too.
Samsung is teaming up with the finance company SoFi and the debit card will be backed by a cash management account. The Samsung Card will directly take on Apple Card, which is issued in partnership with Goldman Sachs.
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Along with the Samsung Card, the company is developing a "mobile-first money management platform," according to a blog post (opens in new tab) by Sang Ahn, vice president and general manager of Samsung Pay in North America.
Samsung launched its mobile payments service in 2015, which allowed users to pay for items by waving their Galaxy device near the checkout register rather than swiping a credit or debit card. Though Apple Pay came out a year earlier, Samsung's service used both NFC (tap to pay) and MST (magnetic secure transmission) technologies so it could be used almost everywhere.
Samsung Pay also incorporated features like the ability the add loyalty cards, receive cash back for some purchases and promotions like bonus points with participating retailers. Users can also pay for mass transit with Samsung Pay.
The company didn't share much else about the new Samsung Card or the money-management platform. Ahn only said, "We are excited to share more details in the coming weeks."
Launching a debit card is a smart move for smartphone companies right now to expand potential revenue streams. People aren't really buying phones right now; Samsung Galaxy S20 sales were hit hard by the coronavirus pandemic. (opens in new tab)