Samsung Acquires LoopPay to Compete With Apple Pay

Samsung Acquires LoopPay to Compete With Apple Pay

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Samsung today announced that it has agreed to acquire LoopPay, a mobile wallet solutions provider that turns existing magnetic stripe readers into secure, contactless receivers.

LoopPay's technology transmits the information stored on a debit/credit card through a magnetic signal to the payment terminal; however, LoopPay does not require NFC or any other wireless standard, so it can by used at most payment terminals found in stores. Apple Pay and Google Wallet require stores to have upgraded terminals with NFC for their mobile payment systems.

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.

“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 was already an investor in LoopPay, along with Visa and Synchrony Financial. The investment 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.”

Take a look at the video below for more details on how LoopPay works...

Chinky Chink - February 20, 2015 at 1:49am
“This acquisition accelerates our vision to drive and lead innovation in the world of mobile commerce..." Samsuck innovating by buying PoopPay...HOORAY!!
Zanka - February 19, 2015 at 4:18am
Still pathetically chasing Apple aye Samsung.
JulianHernandez - February 20, 2015 at 1:53pm
I love Samsung I own a g note 4 and I always defend them when they need to be defended and I will pick their products over Apple any day. But Samsung niche is hardware development, they really need to stick to this because this will never catch on.
TechnoGeek - February 19, 2015 at 2:42am
Why is Samsung going backwards.. We went into NFC and Tokenization due to all the security that occur in 2014? Hello Target, Home Depot and multiple retailer were hit using and Samsung wants to compete with Apple that doesn't secure the information like NFC... People look it up... How embarrassing!
EzzyPay - February 19, 2015 at 1:29am
whats the big deal about Apple pay. I will never use it,especially with all the scams thats going on this days.
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