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Updated 11:29 AM EDT, Tue, Jun 16, 2020

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Samsung Developing Mobile Payments Service

galaxy-s5-fingerprint

Samsung representative showing the Galaxy S5 fingerprint authentication.

Although mobile payments have been around for over half a decade, it wasn't until the October launch of Apple Pay that U.S. consumers, banks and retailers rallied behind the technology.

Samsung wants a piece of the action as well, and is reportedly working with U.S. startup LoopPay for a partnership as early as next year.

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The service will run on Samsung's Galaxy smartphones and potentially on Android Wear, Google's new smartwatch OS. This would void the contract Samsung apparently wrote up with PayPal, putting the Here payment service on the watch.

It is not the first time Samsung has partnered with a company for mobile payments, Visa's payWave technology has been on the Galaxy S3 and Galaxy S4 and PayPal was the first to partner with the Galaxy S5's fingerprint sensor for mobile payments.

Offering a Samsung payment service on Android could be popular, but mobile payment services in the past have been panned. Google Wallet failed to deliver in 2011, and has been trudging along ever since; the same can be said of Amazon's payment service.

Even though both do not advertise frequently, U.S. carriers have also played a big role in the demise of mobile payments in the U.S. Verizon Wireless, AT&T and T-Mobile teamed up to launch SoftCard (previously ISIS) and blocked any other mobile payment services.

On iOS, Apple simply blocked SoftCard from the platform and offered Apple Pay as the standalone payment service, completely avoiding the carrier issue.

Samsung is the manufacturer and may be able to implement the payment service in a way where the carriers cannot block it, or even work with the carriers to offer the payment service alongside SoftCard.

It is still not known if the deal between Samsung and LoopPay is active, what we do know is Samsung is eyeing up the mobile payments market and wants to be competitive against Apple Pay.

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