Samsung today announced that it is acquiring Apple Pay’s direct competitor LoopPay for an undisclosed amount. The company said that LoopPay’s mobile wallet solutions will be utilised and embedded into Samsung’s future product portfolio, especially smartphones.
LoopPay’s founders Will Graylin and George Wallner will team up with Samsung’s Mobile Division to pair up the technology of digital wallet systems into its future smartphones. Founded in Boston back in 2012, LoopPay is a direct competitor to Apple Pay. The company’s Magnetic Secure Transmission tech can work on roughly 90 percent of all existing point-of-sale terminals.
The USP of the payment system is that it doesn’t require a built in NFC chip and instead simulates a credit card swipe. The best part of this payment system is that it can be accepted at more merchants as opposed to the Apple Pay.
It is reported that the payment system will be made available by different service providers according to regions so that the system has a better reach globally and can be implemented with lesser efforts.
“LoopPay’s technology has the potential to work in approximately 90 percent of existing point-of-sale (POS) terminals, according to internal research, with no investment in new infrastructure required by merchants. LoopPay will join Samsung to strengthen the company’s overall efforts to provide users with seamless, safe, and reliable mobile wallet solutions,” the company said in a statement.
In December, reports of Samsung launching an Apple rival payment system began surfacing. This acquisition news also falls in line with recent rumors that Samsung will debut LoopPay’s technology with the Galaxy S6.
Samsung might blend the payment system with the fingerprint scanner so as to add an extra layer of security. The fact that Samsung is opting for a more advanced touch based finger print scanner in the Galaxy S6, testifies the integration of LoopPay further. It is quite possible that Samsung has been referring to the mobile payment system when it said that “it will be launching a special function” in the upcoming Samsung flagship.
Samsung is hosting its annual Unpacked conference at MWC on March 1 where it is expected to unveil the Galaxy S6.