— This is the script of CNBC's news report for China's CCTV on March 2, Monday.
Welcome to CNBC Business Daily. Samsung has unveiled a curved screen smartphone in an attempt to lead its fightback against U.S. rival Apple. As well as the devices, Samsung unveiled its mobile payments system called Samsung Pay. This will allow customers to store their card details in a "mobile wallet" and pay using their smartphone or any other Samsung devices.
Samsung said its payment system works using near field communication (NFC) technology. But unlike Apple Pay, Samsung Pay also uses magnetic strip technology in order for users to pay for items using their mobile devices. This, Samsung claims, will allow it to work with over 90 percent of the world's retailers.
[Jean Daniel Ayme | Corporate Vice President, European Telecom Operations, Samsung Electronics] "So the Samsung pay has something absolutely unique which is not using just one technology widely available in the marketplace. If we were to use use only NFC for example, that would restrict us to 10% of merchants in the U.S. only, which is very limited. By adding to this technology within Samsung Pay, we expand the possibilities to 90% coverage of all the merchants in the US."
Apple Pay may be a small part of the tech giant's portfolio, but since launching in October, it has quickly become the biggest driver of mobile payments for its partners, analyst told CNBC. Apple's cashless transactions service now accounts for two-thirds of all U.S. mobile payments.
"We are more confident than ever that 2015 will be the year of Apple Pay," as Apple's CEO Tim Cook claimed during the company's latest earnings call, the service continues to add financial institutions to its roster -- it's now up to 750 banks and credit unions -- and makes up more than $2 out of every $3 spent on purchases using contactless payments.
Some analysts see the challenge ahead of Samsung Pay.
[MARC EINSTEIN | INDUSTRY PRINCIPAL, ICT PRACTICE, FROST & SULLIVAN] "I think that mobile payments is a very exciting business. Apply pay for example is accepted by 8% of major retailers in the U.S. and Apple's own in store payments only about 2% are coming from apple pay so a lot of growth in the market but Apple is about 18 months ahead of them, and in a market like that i think it will be very challenging for Samsung."
Google will also be announcing a new payments interface for Android this May called Android Pay, a source close to the matter told Ars Technica. The platform, to be announced at Google's annual I/O software-developers' conference in May, will power in-store and in-app payments for third-party apps.
However, Ebay's Paypal is still the No.1 in the game. According to ITG data cited by MarketWatch, PayPal accounted for 78% of digital payment dollars in November, far more than Google Wallet's 4% and Apple Pay's 1% share.
I'm Qian Chen, reporting from CNBC's Asian headquarters.
Follow us on Twitter: