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Samsung Acquires LoopPay To Compete With Apple Pay

By | Feb 19, 2015 11:24 AM EST
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Samsung has acquired mobile payment platform LoopPay.(Photo : CNET)

Samsung has acquired U.S. based payments startup LoopPay in an effort to compete with Apple Pay in 2015.

LoopPay creates several attachments for smartphones, allowing users to wirelessly send money over the phone to a regular magnetic strip reader.

It is one of the providers to replicate a magnetic strip reader, rather than offering a new card reader for mobile devices.

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This might be a good start for Samsung, who needs to quickly catch up to Apple Pay's early support.

Having LoopPay on board may allow them to create a magnetic chip inside of the device, which would give Galaxy S6 users access to all payment readers.

LoopPay claims it can work with 90 percent of all point-of-sale terminals, quite a huge number compared to the 10 percent of retailers offering Apple Pay support through contactless card readers.

"NFC is currently only available in less than 10 percent of U.S. retailers despite NFC's mobile launch almost a decade ago," a Samsung spokeswoman said via email.

"MST solves the merchant acceptance issue that has prevented other mobile wallet solutions from reaching mass adoption."

If Samsung cannot integrate the chip reader into the Galaxy S6 without a case, it might not be a huge win for the South Korean electronics giant, but if it can, it would be huge for mobile payments.

Samsung may even offer the case for free when a buyer picks up the Galaxy S6, although the adoption rate will no doubt suffer if it is not integrated into the mobile device.

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