PayPal, the world’s largest online payment system, has been focusing on growth through strategic partnerships over the last few years, developing relationships with numerous financial institutions, online retailers, credit card giants like MasterCard and Visa, Facebook, and mobile payment solutions like Apple Pay, Android Pay and Samsung Pay.
These partnerships have raised the profile of PayPal as an online payments leader and have sparked a change in the financial industry that sees would-be competitors working together to co-create new options for their shared consumers.
One of the primary goals of these partnerships, and any strategic partnership, is just that – the creation of value for the end user. This goal of a simplified purchase journey is what has propelled PayPal’s existing relationship with Samsung to new heights. Just this week, an announcement was made about an enhanced strategic partnership that would build on what PayPal and Samsung have previously accomplished together – fingerprint authentication and the addition of PayPal as a payment method within Samsung Smart TVs. The new deal extends the latter by enabling PayPal as an option within the Samsung Pay system, as well as allowing PayPal’s Braintree merchants to accept Samsung Pay as a payment method.
By allowing fluid integration between payment options and simplifying the purchase journey, PayPal and Samsung are adding tremendous value to their shared users who may often feel pain points surrounding their options at checkout. In a mobile-first world where payment solutions like Samsung Pay are available and becoming more widely used by consumers globally, PayPal’s integration means the brand stays relevant and gets to keep engagements with users who may have otherwise switched to Samsung Pay as their sole preferred option. In the same light, Samsung benefits from Braintree shoppers who would have made a purchase with PayPal alone, but now have the option of using Samsung Pay.
This interaction between brands serves as a perfect example of a good strategic partnership: Two aligned parties with similar goals and objectives engage with one another to provide value to their shared consumers. They co-create programs that alleviate stress or common pain points, and upon completion of one part of the partnership puzzle, re-engage with a new opportunity to create even more value. Both sides work on evolving the relationship and developing concepts that move well past the initial ask, creating value for not only those consumers but for each other.
We cannot wait to see where else this Samsung-PayPal partnership – or the rest of the partnerships PayPal is in the middle of – will go.