Samsung has acquired LoopPay, a mobile payments company whose technology could allow it to build a viable Apple Pay competitor.
After reports of the two companies working together on a mobile payments solution came to light late last year, Samsung has taken the next step and brought the company in-house. In a statement, Samsung says LoopPay will help “strengthen the company’s overall efforts to provide users with seamless, safe, and reliable mobile wallet solutions.”
With Apple continuing to expand the availability of Apple Pay, offering a strong competitor is key for Samsung, and acquiring LoopPay could help improve whatever mobile payments offering the conglomerate has up its sleeve. The company uses a patented technology called Magnetic Secure Transmission to turn payment terminals into contactless readers. This means LoopPay is accepted in over 10 million stores.
To use LoopPay you would need to purchase one of a number of products that would let you access your mobile wallet, including a CardCase. It was bulky and confused cashiers at times, but it still worked, and that’s the key. When it comes to mobile payments, compatibility and reliability are the key, and LoopPay has both.
Android users have options like Google Wallet and Softcard, but nothing that compares to Apple Pay’s ease of use. If Samsung could bring a solid mobile payments offering before Google or a third party does, it would be prime position to grab an even bigger pie of the Android marketshare. The company is expected to unveil its next flagship Galaxy device on March 1st, which may give the world the first peek at Samsung’s mobile payment solution.