Samsung’s Surprise US Credit Card Move Takes Direct Aim at Apple

According to a fresh report from The Wall Street Journal, Samsung aims to escalate its competition with Apple to unprecedented levels in the United States. Apparently, the Korean firm is partnering with the British bank Barclays to launch a credit card. It will use Visa as the payment network and will soon compete in this field with Apple.

Obviously, this is a clear move to compete with the Apple Card that Apple offers. It wouldn't be the first time Samsung invests in this field. In Brazil, for example, the company already has a credit card in a partnership with local bank Itaú in both Visa and Mastercard variants. However, when it comes to the US, the company is aiming directly at Apple.

The Apple Card is a recent move and comes from a partnership between the iPhone maker, Goldman Sachs and Mastercard.

Samsung and Barclays are reportedly in "advanced talks" and will make a formal announcement by the end of the year. The talks are taking longer than originally planned.

Of course, this is a win-win for both companies. Samsung can get a bigger part of consumers' purchasing habits in the US. Barclays is looking to expand its foothold in the US market with the help of a very popular name in the tech scene.

The credit card is just part of the deal. The Korean firm also wants to offer a variety of financial services like a high-yield savings account, a digital prepaid account, and a "buy now, pay later" deal. Barclays will back at least some of these services, says the source.

Besides Brazil, Samsung has had a Pay Card in Korea since 2020 on the Mastercard network. The Pay Card launched in the UK in 2020 as a digital-only card. Also, Samsung India launched a credit card in partnership with Axis Bank in 2022. This is not the first time the brand has invested in this segment, but the US is special due to it being Apple's stronghold.

At this rate, we would not be surprised if Google ends up launching its own credit card next.