Rewarding loyal customers for creating other loyal customers is nothing new. Banks, clubs, and even wireless carriers have been offering their customers referral rewards for decades now. In the burgeoning mobile payment space, however, referral rewards are a bit less common. With the space being brand new and competition being mainly on the front of which mobile phone you own rather than which service you make a choice to use, competition between the big three, Samsung Pay, Apple Pay, and Android Pay, has never really been given that much attention. Now, however, one of the biggest players in the space is jumping on the bandwagon; Samsung is now offering their users $5 in rewards when a user that they refer to the service makes their first qualifying payment with Samsung Pay.
In a new initiative called High Five Referral Rewards, Samsung is offering current Samsung Pay customers a reason to get their friends and family on board. Through the new Samsung Rewards Card program, Samsung is offering $5 per referral when a new user makes their first qualifying purchase after being referred by an existing user. The promotion, of course, does have a limit. Given Samsung Pay's rather large userbase and the power of word of mouth, Samsung can only pay it forward to the tune of $200 per referring user in total. According to Samsung, much of Samsung Pay's current user base hopped on via word of mouth.
Samsung's press release cited a survey by AGC that showed that Samsung Pay users "spend more money, experience fewer issues, and are more satisfied" compared to users of other mobile payment systems. Since Samsung Pay's magnetic strip transmission allows it to be used just about anywhere a normal credit or debit card can be used, that statement isn't all that surprising. Samsung Pay users can use their phone to pay just about anywhere they shop, as opposed to users of Apple Pay and Android Pay, who have to wait for their favorite spots to support their payment method of choice. While users of non-Samsung devices can't use Samsung Pay, there are a decent number of people out there who either would buy a Samsung phone to use Samsung Pay if they knew more about it, or have a Samsung phone and don't use Samsung Pay, and that's the crowd that this campaign is targeting.