LoopPay Nets New Funding, Beefs up Mobile Payment Security
July 21, 2014
Synchrony Financial (formerly GE Capital Retail Bank) made a strategic investment in Boston-area mobile payment technology company LoopPay. Loop’s app and hardware coupled with a mobile device turn traditional mag stripe card readers into points of sale that can accept mobile payments. The company also said the plug-in fob and new iPhone charge case that enable LoopPay payments are being sold at Staples stores and Staples.com. The infusion of capital from the Synchrony investment will be used primarily to build additional security features into the LoopPay product, according to Jennifer Ni, vice president of product marketing at LoopPay.
“It has become clear to us in the past half year of business-development efforts that security is really top of mind,” said Ni. “Also, with the EMV migration looming in 2015, we hear a lot of demand from a security perspective. So, we have started to build a mobile tokenization technology based on mag-stripe technology.”
Ni said Synchrony’s investment will enable LoopPay to take the nascent security feature from the lab to production. Financial terms of the Series B investment round were not disclosed.