Samsung Acquires LoopPay In Preparation For Wireless Payments Showdown With Apple Pay
We reported last year that Samsung was in talks to team up with LoopPay, a Burlington, MA-based startup firm that specialized in wireless payment technologies. Unlike Apple Pay or Google Wallet, which require an NFC-equipped cash register to complete a wireless transaction, LoopPay works using “Magnetic Secure Transmission,” which allows a customer to simply tap his or her smartphone near a traditional cash register card reader to complete a wireless transaction. And best of all, businesses don’t need to upgrade their cash registers for customers to take advantage of LoopPay.
Those December rumors of a partnership have now turned into a full-fledged acquisition by Samsung. “This acquisition accelerates our vision to drive and lead innovation in the world of mobile commerce,” said JK Shin, President and Head of IT and Mobile Division at Samsung Electronics. “Our goal has always been to build the smartest, most secure, user-friendly mobile wallet experience, and we are delighted to welcome LoopPay to take us closer to this goal.”
“We are excited to take our relationship with LoopPay to the next level, by bringing consumers a mobile wallet solution that is not just safe and reliable, but also widely accepted at more locations than any competing service,” added David Eun, EVP of Samsung’s Global Innovation Center.
According to Samsung, LoopPay will be compatible with roughly 90 percent of point-of-sale terminals (POS) worldwide, which would give it a big advantage over competing solutions from Apple and Google.
Consumers can currently take advantage of LoopPay by using a device like the Card Case, a $50 device that has the secure, wireless payment technology embedded. However, we expect that Samsung may announce in March that its Galaxy S6 and Galaxy S6 Edge will feature LoopPay’s Magnetic Secure Transmission built right into the smartphone without the need for a bulky case.