Purchase of payments specialist should confirm a mobile wallet in upcoming Samsung flagship device
Samsung has given its clearest indication yet that its upcoming Galaxy S6 smartphone – set to be unveiled in just a few weeks – will sport a mobile wallet feature, by announcing the capture of payments provider LoopPay.
The deal will mean that mobile users will be able to use their device to pay for goods and services instead of a traditional debit or credit card, and pits Samsung directly against its rival Apple’s Apple Pay service.
Unlike Apple Pay, which is built on NFC technology, LoopPay’s payment method turns existing magnetic-stripe readers into secure, contactless receivers, mimicking a credit card swipe, with the company saying its technology can work in about 90 percent of existing point-of-sale terminals.
Terms of the deal were not announced, but Boston-based LoopPay, formed in 2012, will continue to operate as an independent unit, hailing the acquisition as ‘a great day’ for the company.
“With our earliest supporters at our side, we have been at the forefront of contactless payments to create a platform that brings together issuers, merchants and consumers that facilitate a seamless and rewarding digital wallet experience,” LoopPay CEO and co-founder Will Grayling wrote in a company blog announcing the news.
“Our vision of inspiring consumers to transition from a physical wallet to a truly digital wallet will continue. I’m most excited that Samsung shares this vision and has chosen to help change how we shop and pay for goods and services. We look forward to working with Samsung to offer the world’s most secure and compelling mobile platform.
The road ahead is an exciting one, and we look forward to continuing this journey together.”
Samsung was already an investor in LoopPay, with the latter recently revealing a protective rear case for Galaxy S5 devices which allows users to pay for their goods or services via a quick touch (pictured above).
“This acquisition accelerates our vision to drive and lead innovation in the world of mobile commerce,” said Samsung’s mobile division president, JK Shin. “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.”
A recent Experian study found that more and more British consumers are using their mobile devices to make transactions, and that a growing number of us think traditional debit and credit cards will disappear entirely within the next few years.
Overall, a third of the UK population (33 per cent) believes credit and debit card payments will no longer be the preferred method of payment in 2020, as paying with a smartphone becomes the method of choice instead.
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