Samsung has announced that it’s acquiring LoopPay, a mobile payment company that Samsung has reportedly worked with in the past. LoopPay specializes in mobile payments through the same magnetic stripe card readers that nearly every business utilizes. LoopPay utilizes a technology called Magnetic Secure Transmission that allows a standard card terminal to function in the same way as an NFC terminal. The downside? The technology has required a case or other accessory to make it possible.
Samsung purchasing LoopPay is a big event. If the companies have been working together for some time now, as rumors have stated, then it’s possible that Samsung has integrated LoopPay’s technology right into the Galaxy S6, removing the need for a case or accessory. The idea isn’t crazy at all, as previous leaks regarding the Galaxy S6 have pinned it as having a new mobile payment system on board.
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, PresidentSamsung
The key factor behind LoopPay is that it works nearly everywhere and it works well. NFC payment systems are varied in their spread and have been known to run into issues. They also face the challenge of dealing with different payment systems and which retailers will accept which payment types, a problem that Apple is now facing. The point is, LoopPay’s system is one that works consistently and in all of the usual places that you’d expect to use a card, giving it a huge leg up on the competition.
The prospect of Samsung and LoopPay working together is an exciting one, if also a slightly disappointing one. While the partnership could allow Samsung to make great headway in the mobile payments war, it could also limit the best mobile payment system to Samsung alone, leaving others without. In the coming months, we’re sure to find out more about Samsung’s plan for LoopPay.Show Press Release
As part of the acquisition, LoopPay founders and veteran payment industry entrepreneurs Will Graylin and George Wallner will work closely with Samsung’s Mobile Division. LoopPay has built an advanced and widely accepted contactless payment solution using its patented Magnetic Secure Transmission (MST) technology. LoopPay’s talent and technology, paired with Samsung’s world leading mobile technology, global presence, and distribution capabilities will help drive the next wave of innovation in the digital smart wallet.
“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,” said JK Shin, President and Head of IT and Mobile Division at Samsung Electronics.
Samsung has an existing relationship with LoopPay, having first identified the potential for the pioneering technology when it became a strategic investor along with Visa and Synchrony Financial. The investment, which was facilitated by Samsung’s Global Innovation Center, helped fuel LoopPay’s MST technology development.
“We are excited to take our relationship with LoopPay to the next level, by bringing consumers a mobile wallet solution that is not just safe and reliable, but also widely accepted at more locations than any competing service,” said David Eun, EVP of Samsung’s Global Innovation Center. “Through this deal we can significantly accelerate our mobile commerce efforts. LoopPay’s outstanding leaders and team have deep-rooted relationships with banks, card networks and merchants that will complement those Samsung has established over the years.”
Margaret Keane, President and CEO of Synchrony Financial, the largest provider of private label credit cards in the U.S. and a leader in promotional financing, as well as an investor in LoopPay, commented, “This is great news for our customers who can access their cards and make payments using LoopPay’s contactless MST technology. Our goal is to offer valuable products for our clients, service providers, and our customers. We look forward to working with LoopPay and others to deliver secure mobile payment solutions for all of our 60 million active accounts.”
“LoopPay is focused on delivering a digital wallet solution that is dependable for consumers around the world, one that provides more value from card issuers and the merchants that serve them,” said Will Graylin, CEO of LoopPay. “We are excited to join the Samsung family to continue our goal of making smartphones trusted, secure smart wallets and unlock the limitless possibilities of mobile enabled commerce.”