Samsung buys LoopPay, targets Apple Pay for Galaxy S6?
Mobile payments startup LoopPay has been causing a splash for a while and rumours of a potential purchase by Samsung circling for months now.
LoopPay's technology turns in-store payment terminals where you normally swipe a credit card, which inexplicably is still the primary method for Credit Cards in the United States, into contactless readers. Loop will work with exiting payment terminals globally.
One reason this could gain ground in the States is because LoopPay’s technology works at most places because stores and restaurants require no special equipment to accept payments, whereas Apple Pay required NFC enabled payment terminals to be installed at the retail locations.
Samsung have looked long and hard and have today announced that they will be acquiring LoopPay for an undisclosed fee and that LoopPay will operate as a wholly owned subsidiary of Samsung Electronics America, Inc.
Will Graylin, CEO of LoopPay, confirmed the deal will not affect their plans to move forward with a digital wallet platform. "Our vision of inspiring consumers to transition from a physical wallet to a truly digital wallet will continue. I’m most excited that Samsung shares this vision and has chosen to help change how we shop and pay for goods and services."
JK Shin, speaking on behalf of Samsung Electronics was keen to stress the importance of the deal to Samsung. “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.”
The timing, of course, should not be underestimated. Samsung are set to unveil their brand new Galaxy S6 at the Mobile World Congress in Barcelona in a little over a week (1. March). With the LoopPay acquisition complete it would be a foolish man who would bet against Samsung announcing their Apple Pay alternative being fully integrated into the Galaxy S6.