Samsung Pay has recorded a net loss of US$16.8m since the mobile payment service was unveiled in March 2015, despite attracting approximately five million users in South Korea and the US in its first six months.
“According to Samsung Electronics’ 2015’s audit report, Samsung Pay recorded $4.12 million (4.956 billion KRW) and $16.8 million (20.167 billion KRW) in sales and net loss respectively in 2015. Its debt and net worth were $23.6 million (28.388 billion KRW) and $10.5 million (12.607 billion KRW) respectively,” Korean publication ETNews reports.
“However Samsung Electronics’ observation is that Samsung Pay’s weak performance needs to be evaluated differently from other normal businesses,” ETNews says. “Although Samsung Pay’s tangible asset including its real estate was $1.01 million (122 million KRW) based on the report, its intangible asset was close to $16.9 million (20.293 billion KRW). This is because Samsung Electronics highly praised Samsung Pay’s MST (Magnetic Secure Transmission) technology and payment solution technologies.”
Samsung has also formally announced that “it has no plans in imposing any commission on using Samsung Pay,” the report adds. “Samsung Electronics views Samsung Pay as an investment that will strengthen competitive edge in Galaxy smartphones.”