Just as it was expected, Samsung has announced that it has agreed to acquire LoopPay, a mobile wallet solutions provider that turns existing magnetic stripe readers into secure, contactless receivers. JK Shin, President and Head of IT and Mobile Division at Samsung Electronics, said the following:
“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."
Will Graylin, the CEO of LoopPay, also shared his input:
"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. 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.”
With the new acquisition, Samsung is looking to reply back to Apple's rapidly growing Apple Pay payment service. LoopPay’s technology has the potential to work in approximately 90% of existing point-of-sale terminals, which should allow Samsung to partner with many retailers and vendors.
Since it works over a magnetic field, LoopPay does not require merchants to support NFC as Apple Pay does. At the moment, LoopPay works through an app and a standalone hardware device. However, there's a big chance that Samsung will build the technology directly into its devices in the future.