Samsung to acquire LoopPay to take on Apple Pay

Samsung is acquiring LoopPay, a mobile wallet provider that allows wireless payments, to take on Apple Pay.

The company has not disclosed the financial details of the acquisition.

As the part of the deal, LoopPay founders and payment industry entrepreneurs Will Graylin and George Wallner will work with Samsung’s Mobile Division.

By using its Magnetic Secure Transmission, LoopPay has built a contactless payment solution.

Together, LoopPay’s talent and technology with Samsung’s global presence will help in driving the next wave of innovation in the digital smart wallet.

Samsung has an existing relationship with LoopPay, having first identified the potential for the pioneering technology when it became a strategic investor along with Visa and Synchrony Financial.

LoopPay aims to enhance and leverage the relationship between the credit card issuer, merchant and customer in both the physical and virtual world.

To make it safer from carrying a wallet, LoopPay application is locked by PIN and password. LoopPay encrypts all data to prevent access or use by others.

LoopPay, an Apple competitor, also makes fob, keychains and cases for smartphones, including iPhone 6.

LoopPay claims that it supports 10,000 plus issuers, thousands of credit and debit cards along with most gift, loyalty, private label, prepaid and campus cards.

Pay claims it supports over dozen of smartphones including iPhone, Nexus, Motorola, Samsung, HTC while Apple Pay supports apple products, iPhone 6, 6 plus, iPad Air 2, iPad mini 3, Apple watch.

Apple Pay has announced that it already owns 1.7 percent of mobile payments after launching the service.

editor@gizmolead.com