Samsung Explores Move Into U.S. Credit Card Market to Grow Brand Loyalty

Samsung Electronics is considering rolling out a credit card for consumers in the U.S., according to a recent report from The Wall Street Journal. The company is in discussions with Barclays to bring its plans for a new card in the country to fruition.

Coupled with its robust menu of electronic devices, offering a credit card that meets people’s spending needs may position Samsung to gain more brand loyalty from consumers in the U.S. 

A new card product from Samsung also stands to bring more competition to the doorstep of credit card issuers that already contend with credit card offerings from tech giants such as Apple.

The efforts from Samsung and Barclays to get the card off the ground are still ongoing, but The Wall Street Journal indicates the companies are targeting an announcement date for their new venture before the end of the year. Visa is in line to be the network for the new card, sources indicate.

We caught up with Matthew Goldman, Founder of consulting firm Totavi, to discuss the potential launch of a new card from Samsung and why it may succeed in a crowded payments marketplace.

Goldman pointed to Samsung’s enthusiastic customer base as one reason why the card may get off to a fast start in the U.S.

“I think that, for people who love Samsung, they love the company just as much as people love Apple,” Goldman told us. “It’s a logical extension for Samsung, and I think it’s something they have been poking at for a very long time.”

Samsung’s digital wallet is a popular financial tool in South Korea, where it accounts for approximately 42% of the country’s digital wallet market. 

But, in the U.S., the company has had a tougher time gaining traction for its mobile wallet product. Recent reports reveal that Samsung’s digital wallet has a market share of only 3% in the U.S. 

In addition to introducing a new credit card, Samsung is also reportedly considering designing other financial products for consumers, such as a high-yield savings account and buy now, pay later programs.

Offering a more complete lineup of financial solutions may position Samsung to gain more users for its digital wallet in the U.S. 

The Wall Street Journal obtained information from a document that it says Samsung sent to financial institutions to explain its goals.

Samsung is reportedly considering launching other financial products, including a high-yield savings account.

The Journal reports that, according to the document, Samsung envisions a financial ecosystem where a customer can earn cash back from a Samsung credit card, deposit it into a cash product from the company, and then transfer it to a Samsung savings account.

The more we spoke with Goldman about the prospects of a new Samsung credit card, the more evident it became that the company has a lot to gain from the endeavor.

“A credit card can help Samsung drive direct commerce, grow loyalty, and gain more data and all those things that these big companies want,” he explained.