Samsung Acquires Mobile Wallet Platform LoopPay
In order to chase down rival Apple and Google in mobile payment Sector, Samsung has acquired US based payment tech firm LoopPay. The Electronics Giant acquired the firm for an undisclosed amount. The acquisition will help Samsung produce its own mobile wallet solution, a direct competition to Apple Pay and Google Wallet.
“This acquisition accelerates our vision to drive and lead innovation in the world of mobile commerce,” said JK Shin, the president and head of IT and mobile for Samsung Electronics. “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.
The founder of LoopPay will work closely with the Mobile division of Samsung Electronics. LoopPay was founded back in 2012. The tech firm provides service of mobile payment. It is predicted that, company’s Magnetic Secure transmission can work almost 90% of all existing point of sales terminal.
Since, the mobile payment competition is accelerating and with Apple’s introduction of Apple pay system in September 2014 and Google wallet already there, this is a step taken further by Samsung Electronics to keep-up the competition.
According to EMarketer, with Smartphone point-of-sale, Mobile payments in the US amounted to 3.5 billion dollar in 2014 which is expected to rise to 27 billion dollar in 2016. Which signals Why Samsung is thinking of building and launching a competitive service in mobile payment sector in the United States.
Technology being used
LoopPay uses MST- Magnetic Secure Transmission technology that turns in-store payment terminals into contact less readers. The frim’s current technology works with a card-case and a standalone FOB. The card-case is a protected case designed for use with some of the top smartphones available. The LoopPay App allows to input and store payment card information. The card-case communicates with the existing payment terminal available at the retail store. You have to tap your smartphone with the payment terminal and select the card and your transaction is complete.
The Firm also pays more attention to security claiming that ‘Security is their top Priority‘. The company promises that LoopPay App is safer than carrying a wallet. You can set PINS and Passwords and store information of all your credit cards with different banks in the LoopPay App.
With the rising competition in mobile payment sector and like Samsung making millions of smartphones, it will be a decent chance for the Electronic Giant to raise the bar of the competition in mobile payment sector. Lastly it would be interesting to see how quickly they integrate with LoopPay and give users a more secure mobile payment platform.
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