Samsung has announced plans to acquire LoopPay, which is a technology that stores payment information from a credit card or debit card’s magnetic stripe according to Macrumors.
Samsung’s latest move is seen as a decision to rival Apple Pay, which was launched last year. Both companies were reportedly in discussion last December for a payment system that would compete in the market with Apple Pay payment service.
LoopPay works by storing payment information from a credit card or debit card’s magnetic stripe. Instead of a physical card, the technology transmits payment details to card readers. LoopPay is compatible with 90 percent of existing card readers and does not require merchants to support NFC unlike Apple Pay.
Samsung may be looking at the possibility of integrating the technology into its phones in the future. This would allow the service to replace credit cards the same way Apple Pay does. When this happens, Samsung customers will be able to wave their phones at payment terminals rather than swiping their credit or debit cards.
The Korean tech giant explained that LoopPay will provide customers of Samsung with a “seamless, safe, and reliable” mobile wallet solution. According to Macrumors, Samsung will build upon LoopPay’s technology to create a payment service that is similar to what Apple Pay Payment service is already providing its numerous customers since it was launched.
“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,” revealed JK Shin, President and Head of IT and Mobile Division at Samsung Electronics.
While LoopPay may not boast of the same security features as Apple Pay Service, the service has all it takes to compete with the later in terms of its ability to store IDs, loyalty, and membership cards along with payment cards.
The deal, which was announced by Samsung last Wednesday, will see the founders of LoopPay and veteran payment industry experts Will Graylin and George Wallner team up with the Korean smartphone giant and also work closely with the mobile division of the company.
The story was first broken by Re/code back in December. Re/code had in that report explained that the Samsung was planning to incorporate the technology into its soon-to-be released Galaxy S6 flagship.