Samsung has unveiled its mobile payment service called Samsung Pay.

Just like Apple Pay and Goggle Wallet, this new mobile payment service will link customers' debit, credit and loyalty cards to their Galaxy S6 smartphones, which they can use to purchase groceries or earn loyalty points with a few simple taps.

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Although Apple and Google have the advantage of offering this kind of mobile payment scheme first, Samsung also has an ace up its sleeve.

Last month, Samsung bought a Boston startup company called LoopPay Inc.  to acquire a technology the South Korean company hopes will boast the acceptance of Samsung Pay over its competitors.

Meanwhile, Apple Pay requires the use of near field communication (NFC) card readers to facilitate payment.  Unfortunately, the adoption of this new technology by store merchants will take a while.

In the United States, major credit card companies are pushing for the replacement of the old magnetic strip card readers with the NFC. An October deadline has also been made to convince U.S. retailers to get NFC card readers.

Samsung Pay when made available in U.S. will have no such problems. Samsung claims their mobile payment service can work with both magnetic stripe and NFC card readers. 

This will benefit American retailers who are either reluctant or can't yet afford to acquire the new and understandably more expensive NFC readers.

Tim Sloane, a Mercator Advisor Group analyst, believes Samsung Pay's ability to work on both systems will help achieve broader acceptance among customers than Apple Pay or Google Wallet.

Samsung Pay is expected to start its operations the middle of this year and will initially be available in South Korea and the United States. Afterwards, the mobile payment service will be extended to China and Europe.

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