Samsung and Barclays plan U.S. credit card launch using Visa network to increase customer rewards and expand market presence.

Samsung Electronics is in contact with Barclays Bank of the United Kingdom to introduce its own credit card in the United States. On November 7, Samsung Electronics and the British bank Barclays are in discussions to introduce a credit card in the US, and the two companies aim to use Visa's payment network for the credit card.

Samsung Electronics says that by providing credit cards in the US, it may increase rewards for customers who purchase goods like TVs and smartphones. Apple, a competitor in smartphones, has also increased sales in the US by providing its own credit card. In partnership with the investment bank Goldman Sachs and Mastercard, Apple launched its private-label credit card (PLCC), the "Apple Card," in 2019. This allows Apple to provide 3% cashback when paying at partner stores and interest-free installment payments for goods purchases.

Given that Samsung Electronics has significantly more consumer connections than Apple, including TVs, washing machines, and fridges, it is expected that the company will increase customer loyalty in the US by providing extra benefits if it issues its own credit card. As of the first quarter of the current year, the company holds a 31% share of the U.S. smartphone market, second only to Apple's 49%. It currently ranks first or second in the majority of product categories in the U.S. home appliance company.

Since Samsung Electronics' credit card launch would be beneficial for its regional growth, Barclays, which also wants to strengthen its footprint in the U.S. financial industry, appears to be engaged in the partnership. Samsung Electronics is also exploring a strategy to deposit the cash-equivalent amount refunded based on the product purchase price using the recently launched credit card into Samsung Cash.