Jefferies: Samsung Pay 'Could Dwarf' Apple Pay

Samsung SSNLF announced a new smartphone – the Galaxy S6/S6 Edge – at the Mobile World Congress on Sunday. In a note, Jefferies said that the new smartphones add an "undeniable cool factor" to the brand's products that should help the company gain share of the high-end smartphone market.

Critically, the analysts also mentioned the possibility that Samsung Pay "could dwarf" Apple Inc. AAPL Pay. The analysts' rationale is that Apple Pay relies on NFC-capable terminals, which account for just a small fraction of the installed payment terminals. Alternatively, Samsung Pay can be used at terminals with the traditional swipe technology.

Related Link: Does Samsung Pay Compete With Apple Pay, Android?

However, Samsung and Apple will also continue its "symbiotic" relationship, the analysts said, noting that Apple may source components for the Apple Watch and flexible displays from Samsung in the future.

Jefferies also upped Samsung's price target on the Korea Exchange by 25 percent to 1.7 million Korean Won.

Samsung gained nearly 5 percent in Monday's trading to 1.423 million Won.