Samsung Electronics is preparing to launch its own credit card in the U.S. to challenge Apple’s Apple Card, according to a Wall Street Journal report.
The report said that the South Korean technology giant is in advanced talks with the British bank Barclays to finalize a partnership that would create an integrated consumer finance function within Samsung’s Galaxy devices and digital wallet services. A PYMNTS report estimated that 75 million Americans own a Galaxy device.
The Samsung card would operate on the Visa payment network, sources said. The planned card is expected to offer cash-back rewards for purchases, with a unique feature allowing users to transfer these rewards to a Samsung savings account, the report said.
Customers could then use the credits for discounts on future Samsung product purchases, such as phones, TVs and home appliances, reinforcing Samsung customer loyalty.
Sources told the Journal that Samsung previously attempted to launch a credit card in 2018, but the project faltered due to bank skepticism.
In addition to the credit card, Samsung is exploring other financial services, including digital prepaid accounts, high-yield savings options and enhanced buy now, pay later plans. The report said that all of these products could drive consumers to use the Samsung digital wallet, which lags in usage behind Apple in the U.S.
According to the Journal, the partnership aligns with Barclays’ goals as well. These include expanding its U.S. credit card business and entering more co-branded partnerships, particularly in the technology sector.
As for the Apple Card, the Journal reported this summer that Apple and JPMorgan Chase are in talks for the bank to replace Goldman Sachs as the credit card issuer.
Sources said that although talks have missed earlier deadlines, Samsung and Barclays are aiming to make an announcement by the end of the year.
This is hardly Samsung’s first financial services endeavor. PYMNTS reported in October that Samsung and Coinbase joined forces to bring the Coinbase One premium membership program directly into the Samsung Wallet app for U.S. users. It includes a three-month free trial of Coinbase One and a $25 USDC bonus upon completing a first trade.
