Samsung and Barclays May Launch Co-Branded Credit Card in the US

Samsung aims to expand its financial services business in the US. The company is reportedly in discussion with British bank Barclays to introduce a credit card stateside using Visa’s global payment network. If the plan pans out, the card may allow the firm to offer special cashback promotions on its products.

Samsung may expand its financial services business in the US

According to The Wall Street Journal (via Chosun), Samsung plans to introduce a bunch of financial products, including high-yield savings accounts, digital prepaid accounts, and new “buy now, pay later” products. However, the company will need a banking partner to offer some of these products, and hence, it wants Barclays to manage its financial operations.

As of now, negotiations are underway, and no definitive contract has been signed yet. The outlet says that the two companies may announce a partnership by the end of the year. Basically, Samsung wants to make a stronger financial ecosystem around its products and services.

The company hopes that its own credit card, alongside the Samsung Wallet, will allow users to stay within its ecosystem. The card could offer cashback rewards that are automatically transferred to a Samsung account, allowing customers to easily use them in future purchases. This move could improve customer loyalty and boost sales of Samsung’s products across smartphones, TVs, and home appliances.

This is a similar strategy to what rival Apple pursued a few years ago. In 2019, Apple launched the Apple Card (a private-label credit card) in partnership with investment bank Goldman Sachs and Mastercard. The card offered cashback rewards and interest-free financing options for Apple products. However, Goldman Sachs has since suffered losses in its consumer finance market. Now reports suggest that Apple is in talks with JPMorgan Chase to take over the partnership.

Note that Samsung has yet to comment on the new financial services business plan. “We cannot confirm anything regarding whether the company will enter the US credit card market or the status of the negotiations,” said a Samsung spokesperson (via BusinessKorea).