Samsung has invested $250 million to acquire LoopPay just so it could compete with competitor Apple’s Apple Pay. LoopPay is a Massachusetts-based startup whose technology will be used in the Samsung Pay mobile payments system when it launches later this year. When asked about this development a Samsung spokeswoman and LoopPay CEO Will Graylin declined to comment.
Basically LoopPay developed a technology that allows shoppers to pay for purchases in stores by just placing a special piece of hardware instead of a credit card or debit card.
Now the South Korean giant has acquired this technology for a huge amount and the company is embedding the LoopPay technology into its new phones, so that the shoppers can tap and pay with a new Samsung Galaxy S6 instead of using a credit card.
This acquisition is part of Samsung’s plan in making the Samsung Pay more efficient than Apple Pay. The company wants Samsung Pay to work at the vast majority of US stores.
Plus as the LoopPay’s technology is just like a card swipe it means that it will be able to work anywhere where a credit card works. This is very different from Apple Pay and Google Wallet as these two technologies require a store to have upgraded its checkout equipment to work with a technology known as near field communication or NFC.
Recently we have seen that NFC adoption has increased in stores and Samsung has stated that Samsung Pay will also be compatible with that technology. Up till now it’s not clear as to how Samsung’s NFC implementation will work on Android phones in the US as Google and major wireless carriers are partnering to pre –load Google Wallet onto the phones.