Samsung has made its move to enter mobile wallet segment by acquiring US based LoopPay. LoopPay's technology allows mobile payments through traditional magnetic credit card readers. This strategic move is to counter an offering from Apple Inc. LoopPay had been expected to have its next generation of digital wallet tech on board with the next Samsung Galaxy smartphone.
According to a report, Samsung plans to incorporate LoopPay's technology in its next flagship phone, the Galaxy S6. Samsung will formally introduce the Galaxy S6 at an event in Barcelona.
LoopPay's technology differs because it works off existing magnetic-stripe card readers at checkout, changing them into contactless receivers, About 90% of checkout counters already support magnetic swiping.
Samsung had invested in LoopPay, along with Visa Inc and Synchrony Financial, before its acquisition. Terms of the deal, which Samsung negotiated over several months, were not disclosed.
