According to PulseNews sources, Samsung has never charged banks and card issuing companies to make their cards compatible with Samsung Pay. Now Samsung will start charging fees to banks for Samsung Pay. However, Samsung is working on a marketing strategy that returns an amount of the fees it charges card companies. That amount can vary depending on the card payments.
This new strategy is similar to marketing support offered by global payment processing companies like MasterCard and Visa to their partners. The fee structure is yet to be fixed by Samsung, and the company is likely to take a variable pricing approach. The company could factor in things like the market share of the card issuer and the volume of payments.
Samsung has notified approx. 10 card companies about the end of the automatic extension of previous contracts. It means that the South Korean firm will renew contracts after factoring in charges for using Samsung Pay.
