"Samsung Seeks to Launch Credit Card in U.S. in Partnership with UK’s Barclays"

WSJ Reports
High-Interest Savings Accounts Also Expected to Launch

The Wall Street Journal (WSJ) reported on November 7 (local time), citing sources, that Samsung Electronics is in negotiations with British bank Barclays to launch a consumer credit card in the United States.

According to the sources, the card is being considered for use on Visa's credit card payment network, and the companies plan to announce a partnership by the end of the year. However, the negotiations have progressed more slowly than expected, and no definitive agreement has been reached yet.

In addition, Samsung Electronics is reportedly considering launching high-yield savings accounts, digital prepaid accounts, and new buy-now-pay-later products, and has discussed collaborating with Barclays on some of these offerings.

This partnership is seen as a move that aligns the interests of both companies: Samsung Electronics aims to strengthen the influence of Samsung Wallet and related services in the U.S. market, while Barclays seeks to increase its market share in the American financial sector.

WSJ noted, "Samsung's digital wallet is highly popular in its home market, but its consumer financial products lag behind Apple in the U.S." The report added, "Through this partnership, Barclays is looking to expand its lending, while Samsung hopes to emulate Apple's financial products and foster deeper brand loyalty."

According to documents obtained by WSJ, Samsung is considering a plan in which cashback earned from using the new credit card would first be deposited as Samsung Cash and then transferred to Samsung's high-interest savings account. Samsung also expects that credit card benefits will help boost sales and consumer loyalty for its own products, such as smartphones, TVs, and home appliances.

The issuance of a credit card by Samsung Electronics and Barclays appears similar to the approach previously taken by Apple. In 2019, Apple partnered with investment bank Goldman Sachs and Mastercard to launch the Apple Card, a private label credit card (PLCC). The Apple Card drew attention by offering unlimited 2% cashback on Apple Pay purchases, unlimited 3% at partner merchants, and interest-free installment plans for Apple product purchases.

However, these products have reportedly incurred significant losses in the consumer finance market, and Apple is now in talks to switch its financial partner to JPMorgan Chase. WSJ added that Samsung Electronics also explored launching a credit card in 2018, but financial institutions at the time responded with skepticism.