Samsung Pay features Magnetic Secure Transmission (MST), which the company claimed as the latest solution for payment through mobiles at points of sale.

Samsung pay is a virtual replacement to plastic credit or debit cards. With the newly launched service, Samsung users are not required to carry their wallet anymore.

The service allows its users to pay the money online on the go. Samsung Pay works at almost all stores where plastic money is accepted.

The mobile phone directly sends signals to the magnetic stripe card readers and the payment is done in seconds.

As of now, Samsung Pay will go live in South Korea on August 21 and on September 28 in US, followed by other markets like China, Spain and UK.

Yesterday at the launch event, Samsung also unveiled wider Galaxy S6 edge and Note phablet. The company also announced to unveil Samsung Gear S2 during IFA meet in Berlin in September.