Why Samsung Pay is Accepted at Walmart, but Not Apple Pay
The primary reason you can use Samsung Pay at Walmart but not Apple Pay is due to the payment technologies and agreements each company has with retailers. This article delves into the underlying factors that determine the acceptance of mobile payment systems by retail giants like Walmart.
Technology Compatibility
One key factor in the acceptance of mobile payment systems is their compatibility with payment terminals across different retailers. Samsung Pay utilizes both NFC (Near Field Communication) and MST (Magnetic Secure Transmission) technologies. MST, in particular, allows Samsung Pay to act as a traditional magnetic strip card, making it compatible with older card readers that do not support NFC. This broad compatibility means Samsung Pay can work at a wider variety of terminals, including those found at Walmart.
Retailer Agreements
Walmart has made strategic choices regarding its payment ecosystem, opting to support its own payment system, Walmart Pay, and not integrating Apple Pay or Samsung Pay into its service. This decision is influenced by various business considerations. For instance, Walmart may have agreed to support specific payment platforms due to better transaction fees and engagement strategies. The retailer may also have a priority to promote its own brand and maintain better control over its customers' payment experiences.
Market Strategy
Technology companies like Apple and Samsung have different market strategies and priorities. Samsung may have focused on securing partnerships with certain retailers, while Apple has a more selective approach in establishing partnerships. These strategies can directly impact the acceptance and integration of their respective payment systems.
The Walmart Strategy
A recent addition to these explanations suggests that Walmart's decision to not accept other mobile wallets is to promote its own payment system, Walmart Pay. However, this strategy can be complex. Pushing customers to use a new payment system can be less efficient compared to the simplicity and speed of using a traditional card. Reducing the convenience of a payment method could deter customers and impact overall customer satisfaction. Walmart cannot completely eliminate the use of traditional cards and expect to retain the majority of its customer base.
Another significant factor is that Walmart has not signed an agreement with Apple to provide Apple’s digital wallet services. This lack of a partnership means that Apple Pay cannot be integrated into Walmart's payment system, much like the situation with Samsung Pay. This absence of a formal agreement is a clear barrier to the acceptance of Apple Pay at Walmart.
Conclusion
In summary, the acceptance of Samsung Pay at Walmart versus the non-acceptance of Apple Pay is a result of a combination of technological capabilities, strategic business decisions, and existing partnerships. Understanding these factors can provide insights into the broader landscape of digital payment systems within the retail sector.