The news: Samsung launched Wallet Perks, a new program that gives Samsung Wallet users personalized offers across Rakuten’s network of more than 3,500 brands and over 25,000 in-store and dining partners. 

Cash back can be redeemed through the Samsung Cash Card.

Rewards discovery is also getting easier: Users can find  cash-back opportunities near them using Samsung Wallet’s new Nearby tab, which highlights nearby stores with reward opportunities.

Why this matters: Samsung Wallet has one-third the reach of Apple Wallet and half the reach of Google Wallet by ecommerce-only users, per our forecast.

Juicing cash back through Rakuten could incentivize Android users to switch from Google Wallet to Samsung Wallet. 

Zooming out: Samsung’s push into merchant discovery via in-app maps and designated merchants mirrors other payment providers trying to use merchant networks to attract customers.

• Cash App’s Neighborhoods tab lets users search for merchants that participate in the platform’s Local Cash loyalty program.
• Bilt’s Neighborhoods also directs cardholders to shop and rent at participating merchants and buildings for enhanced rewards.

Implications for digital wallets: Digital wallets are expanding their influence in the shopping journey to increase user engagement.  

As shoppers start using wallets at the beginning of their shopping journey instead of just at checkout, digital wallets can monetize location-based merchant deals in their apps through sponsored placements, merchant-funded offers, and performance-based advertising.

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