Samsung is launching a new way to manage your money, including a debit card coming later this summer in the US. So what is Samsung Money, and how does it differ from a regular debit card? [MUSIC] [MUSIC] It feels like all the big tech companies are suddenly getting into personal finance. We've seen Apple with the Apple card which is a credit card. And Google is rumored to be working on its own version of a debit. Card for Samsung money. Samsung has partnered with personal finance service, so phi and it's essentially a cash management account, plus a debit card that's all accessible within the Samsung Pay app. Now if you hadn't guessed already, that means that because it lives in Samsung Pay, it's only available for galaxy Arno's those with a Galaxy S six or later. And some galaxy wearable devices. You can sign up for the waitlist within the Samsung Pay app or on the website. And the big draw card about this card is that there are no account fees, although that might be subject to change. Change if you look closely at the fine print, so when the card is out and you apply for it and you're approved, you get the digital version of the debit card almost instantly within the Samsung Pay app so you can use it, then there's also going to be a physical version that's going to be shipped to you shortly thereafter. Now like the apple card, this physical Samsung money debit card will not have any account number or any CVV on it. So there is an extra layer of protection if you lose it or it gets stolen Within the app, you'll be able to look at your balance, transaction history, be able to freeze the card or even flag suspicious activity without having to call anybody. Now there also will of course be some extra money management tips and tools to be able to keep an eye on your finances. Although we don't yet know exactly what that will entail. We'll have to wait for the launch to find out. So that cash management account will have an interest rate of 0.2%. It doesn't sound like that much, but it actually is a little higher than the national average. deposits will also be insured by the FDIC for up to $1.5 million. So far, it doesn't sound a lot different from a regular debit card that's issued by a traditional bank. So let's look at what is a little bit different. First up some perks. So Samsung Pay users have access to Samsung rewards. So you can do things like redeem points for certain Samsung goods and services or enter competitions with the Samsung reward points. When you make a transaction with Samsung money debit card, you actually get some extra Samsung points within Samsung rewards although we don't yet know the exact transaction amounts that they'll be equivalent to. And also once you receive 1000 Samsung reward points or you already have those in your account, you'll be able to redeem those for cash back into your account. Now there's currently no way to load physical cash onto this card like you would a traditional debit card by sight going to the ATM or to a bank branch. Instead, you'll have to rely on direct deposit or an a CH transfer. Now if you want to take cash out of course it's possible But, you have to do it from one of the old points 55,000 ATMs across the US, which also includes, the checkouts, at some CVS and Walgreens stores. Now, you would do this in order to have no fees or the fees reimbursed to you, when you take out cash. If you go to any other ATM or an ATM from another bank, you will be subject to those fees. Samsung so far I have also said there will be plenty more features coming soon although didn't give us specifics on the money management features, just that there will be more ways to manage your money going forward. Now the question that you might have is why is Samsung doing this because it doesn't seem like this debit card is all that different from many other debit cards out there. I can think of a couple of reasons why Samsung is diving into financial services. The first is Samsung Pay itself. So back in 2015, when Samsung Pay launched, it had a technology that really differentiated it from Apple Pay. And Google pay, also known as Android Pay at that time, which we're relying on NFC payments only. Samsung has a technology called MST or magnetic secure transmission. This essentially mimics the swipe of a magnetic strip at a terminal that doesn't have NFC or a contactless payment method. This at the time was a really big deal especially in the US because contactless payments and NFC compatible terminals. Were not that common, so it really was a feature of why you would consider a Samsung Pay over either an Apple Pay or Google pay, but now fast forward to 2020, and so many more terminals across the US, and especially around the world, do have contactless payments and NFC is much more common, so it's not really a big differentiating factor to choose Samsung Pay over one of the other methods Specifically Google pay if you are on Android. So a debit card adds another layer of complexity here and another reason maybe why you would choose to use Samsung Pay over Google pay. The second reason is there is a huge potential market because according to the Federal Reserve, over 55% of all transactions made in 2018 were on non prepaid debit cards. That is a lot of potential users out there, even if that number is a little more reduced because it's limited to Samsung Galaxy users. So that's everything we know so far about the Samsung money debit card by Sophie and the cash management accounts. We have more details in the article on CNET plus, don't forget when this card actually launches We'll be able to apply for it and find out a lot more detail about how it all works later in the summer. [BLANK_AUDIO]
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