sciencetech-blog

comments

Samsung is set to launch its own rical to Apple Pay after buying a mobile payment firm. 

Samsung will buy LoopPay, a mobile payments company that let's people pay for goods using their phones.

It is expected to reveal the service on March 1st, when it launches its new Galaxy S6 handset.

LoopPay (left) calls itself a 'wallet solution' that lets customers pay with their phones and tablets 'virtually everywhere'. It consists of an app and a device, which is either a fob or a phone case. If the firms do partner up, LoopPay's technology could be built into Samsung phones (Galaxy S5 pictured right), tablets and watches

LoopPay's technology allows mobile payments through traditional magnetic credit card readers, so it can theoretically work in a lot more places than Apple Pay, which requires special payment pads to work.

Samsung did not say how much it's paying to buy LoopPay. 

'Samsung Electronics Co., Ltd. today announced that it has agreed to acquire LoopPay, the acclaimed mobile wallet solutions provider that turns existing magnetic stripe readers into secure, contactless receivers,' the firm said.

LoopPay's technology has the potential to work in approximately 90% of existing point-of-sale (POS) terminals.

'This acquisition accelerates our vision to drive and lead innovation in the world of mobile commerce. 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,' said JK Shin, President and Head of IT and Mobile Division at Samsung Electronics. 

 As part of the acquisition, LoopPay founders and veteran payment industry entrepreneurs Will Graylin and George Wallner will work closely with Samsung's Mobile Division.  

Samsung has an existing relationship with LoopPay, having first identified the potential for the pioneering technology when it became a strategic investor along with Visa and Synchrony Financial.  

'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,' said David Eun, EVP of Samsung's Global Innovation Center.

'LoopPay's outstanding leaders and team have deep-rooted relationships with banks, card networks and merchants that will complement those Samsung has established over the years.'

'LoopPay is focused on delivering a digital wallet solution that is dependable for consumers around the world, one that provides more value from card issuers and the merchants that serve them,' said Will Graylin, CEO of LoopPay. 

Never one to be outdone by its biggest competitor, Samsung is now looking to launch its own mobile payment service to rival Apple Pay (pictured at its launch with Tim Cook). Sources said the Korean tech giant is in talks with startup LoopPay to let people pay for goods using their phones

'We are excited to join the Samsung family to continue our goal of making smartphones trusted, secure smart wallets and unlock the limitless possibilities of mobile enabled commerce.' 

Late last year, sources told Re/code that the South Korean tech giant is in talks with startup LoopPay.

Samsung has previously allowed NFC payments on certain networks and with partners including Barclaycard, but if it teamed up with LoopPay, the service would be expanded more widely.

LoopPay calls itself a 'wallet solution' that lets customer pay with their phones and tablets 'virtually everywhere'.

It consists of an app and a device, which is either a fob or a specially-designed phone case.

The sources revealed that Samsung is already in talks with the Massachusetts-based provider, and prototypes have been created, but there is no word on when the service will launch - if at all.

The LoopPay app securely stores all payment cards including credit, debit, loyalty and gift cards.

These can be used to pay for shopping in 90 per cent of shops and banks in the US.

Customers simply tell the retailer which card they want to use before tapping the device on a reader.