Need to Know
- SoFi, Mastercard, and Samsung have partnered for Samsung Money by Sofi, offering cash management and an exclusive debit Mastercard.
- Users have access to membership benefits including discounts on Samsung products.
- The account offers no fees, instant activation, and will offer rewards for savings activity.
- Samsung Money launched this week and is now available to U.S. customers.
Two months after Samsung announced plans to launch its own debit card, the company has gone live with Samsung Money by SoFi, a partnership with finance company SoFi and Mastercard.
Samsung Money, which is now available to U.S. customers, is notable for its debit Mastercard, a no-fees mobile payment option that draws money directly from users’ accounts—which is to say, account-holders can only spend money they have and are not paying using credit. Here, Samsung Money differentiates itself from its major competitor, Apple, whose leading proprietary financial option through Apple Pay is a credit option, the Apple Card.
“Samsung’s goal is to make everyday life better by putting powerful tools in the hands of Galaxy users,” Sang Ahn, VP and GM of Samsung Pay in North America said in May when Samsung Money was first announced. “Samsung Money by SoFi is our biggest move yet to help users do more with their money. Samsung Pay is already the most rewarding shopping and payments experience driven by numerous innovations over the years. Now, users can access mobile-first financial services and earn exclusive Samsung benefits.”
SoFi, the San Francisco-based company launched in 2011, is a leader in affordable debt-management solutions for students, as well as those taking on mortgages and low-risk loans. The company expanded its offerings to include cash management products, including debit, in 2018.
In addition to being fees-free, Samsung Money by SoFi will reward users for saving activity and will offer instant activation—no 1-800 number required.
While Samsung does not seem to be directly taking on Apple and its Apple Card, the company is surely hoping for the same type of growth Apple has seen since that product’s launch: Apple’s Q1 earnings this year showed a 9% increase in year-over-year revenue, driven largely by the Apple Card.