Samsung Acquires Loop Pay: Look Out Apple Pay?
Feb. 19, 2015
The rumors earlier this month that Samsung would include a payment service to compete with Apple Pay in the next generation of its Galaxy smartphone leveraging technology from Boston-based Loop Pay seems to have been confirmed. Loop Pay yesterday announced it has agreed to be wholly acquired by Samsung. Loop Pay’s contactless technology stores payment-card details in a mobile app and currently uses a fob or charge case that users wave over a traditional point-of-sale terminal to complete a contactless purchase—NFC is not needed to transmit the user’s credit-card information. The technology, called Magnetic Secure Transmission, if it were imbedded in the Samsung Galaxy S6, would immediately enable acceptance at virtually all retailers.
“Loop Pay has put together a solution that works at existing points of sale,” Loop Pay CEO Will Graylin told CardNotPresent.com in a recent interview. “Loop Pay supports existing cards. We support private label cards as well as standard credit and debit cards, gift cards and loyalty cards.”
Experts expect Apple Pay to be accepted by nearly 40 percent of retailers by the end of this year—well short of the 90 percent a Samsung solution powered by Loop would reach. Apple does have a commanding head start, but Graylin said teaming up with Samsung could change the game.
“Our vision of inspiring consumers to transition from a physical wallet to a truly digital wallet will continue,” he said in a statement yesterday. “I’m most excited that Samsung shares this vision and has chosen to help change how we shop and pay for goods and services.”
Terms of the deal were not disclosed.