The competition between Apple and Samsung has just gotten fiercer — this time it’s for the mobile payments grand prize.
Samsung announced yesterday (Feb. 18) that it had acquired LoopPay, a mobile commerce platform that uses its Magnetic Secure Transmission (MST) patented technology to turn existing mag stripe readers into mobile contactless receivers and enables LoopPay digital wallet users to use their LoopPay wallets at more than 90 percent of merchant establishments today. The LoopPay technology was the subject of a PYMNTS.com “Breakthrough Series” serial in 2014.
As part of the deal, LoopPay founders Will Graylin and George Wallner will be working in collaboration with Samsung’s mobile division on customer loyalty and customer service matters as it relates to mobile payments.
“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,” JK Shin, president and head of IT and mobile division at Samsung, said in a company news release.
LoopPay’s wallet also enables any card with a mag stripe on it, including gift and private label cards as well as loyalty and membership cards. LoopPay’s technology mimics the swipe of a physical mag stripe card, so merchants also pay card present rates for LoopPay transactions.
In December, when news of the potential collaboration was leaked, Graylin said that the mobile payment technology would be implemented in a smartphone sometime in 2015 that would have “massive penetration.” He declined to name the handset manufacturer. We now know that handset manufacturer is Samsung.
Source:
http://www.pymnts.com/news/2015/samsung-takes-on-apple-pay-with-looppay-acquisition/#.VOYsStSUe7s
