On Monday, South Korean electronics maker Samsung launched its first credit card in the U.S. in collaboration with Barclays. This highlighted the tech giant’s deepening involvement in financial services, and the company revealed that it had plans to expand its footprint in the financial industry.
Dubbed the Samsung Galaxy Credit Card, the firm’s first U.S. card is issued by Barclays Bank, and it bears the branding of the two companies. It runs on the Visa system and allows users to apply for the card, manage their accounts, track their spending and redeem their rewards exclusively using the Samsung Wallet.
This card will allow users to claim a 5% cash back on any products of Samsung that they purchase, and the users are also eligible to get other rewards when they use Samsung Pay or the other spending classifications of the company.
The launch of this credit card ramps up Samsung’s competition with U.S. tech platform Apple Pay that currently holds pole position within the U.S.
Samsung’s entry into the credit card space comes at a time when banks and tech companies are scrambling to deepen the link between conventional financial products and digital wallets. This push is geared at making smartphones the de facto device used for managing finances and making payments.
Speaking during the launch of the credit card, Barclays Bank’s Doug Villone, the head of partnerships and cards at the financial institution, explained that the Samsung Card is intended to make customers experience a seamless payment journey at a time when more people are opting to use their mobile devices instead of physical wallets while managing their finances.
Sih Lee, Executive VP of Samsung and in charge of fintech business within the North American region, said the card comes as a natural next step given that 70% of Americans own at least one Samsung device and of those, about 30% own more than three products made by the South Korean company.
Lee added that the card was just their first step and more was to come as the company looks out for more partnerships and collaborations aimed at responding to the needs of their customers. This statement shows that the tech giant is not making a one-off entry into financial services but is actively looking out for additional ways to expand their footprint into the sector.
As the technology industry becomes more competitive, we should expect more leading companies making their entry into additional verticals as they seek to leverage their brand exposure among consumers.
Enterprises like Berkshire Hathaway Inc. (NYSE: BRK.A) (NYSE: BRK.B) with deep roots within the technology and financial services sector are likely to take an interest in this emerging trend in which electronics makers branch out into financial services.
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