Two weeks ago, a report emerged that Samsung was looking to work a mobile payments processor into the Galaxy S6. LoopPay was alleged to be the system Samsung was leaning on. At the time, we collectively logged it into the memory bank as something that was plausible, and smart, but ultimately needed confirmation from Samsung before it was truly believable. Though we obviously don’t know what the Galaxy S6 has in store for us, Samsung just announced they purchased LoopPay.
Terms of the deal were not disclosed, but LoopPay’s founders are joining Samsung’s mobile branch to bring us “next wave of innovation in the digital smart wallet.”
If you’re wondering why Samsung bought LoopPay and not another service — or create their own — it might have to do with reach. LoopPay presents an interesting solution to contactless payments because it turns any existing point-of-sale terminal into a mobile payment hub.
Storing your cards, the LoopPay app then transmits a signal to a card swipe machine via their patented (and proprietary) Magnetic Secure Transmission (MST) protocol.
JK Shin, President and Head of IT and Mobile Division at Samsung Electronics, said “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.”
The acquisition also placed Samsung in direct competition with the likes of Google Wallet and Apple Pay, and further plants Samsung as a standalone entity rather than an Android OEM. Samsung also invested in LoopPay long ago, which allowed them to build their MST technology.
It’s not clear if LoopPay will remain available as a standalone app for Android and iOS, or if Samsung will look to make it a proprietary service for their own devices.