The mobile payments empire is heating up. More and more banks and merchants are inking deals with Apple’s Apple Pay product and that’s got the leaders of Samsung sitting in Seoul South Korea scratching their heads. The smartphone giant is looking to get into the payments space fast and to do that they’ve acquired LoopPay a mobile payments startup that was founded in Boston Massachusetts in 2012.
LoopPay uses their proprietary and patented technology called Magnetic Secure Transmission (MST) technology which turns virtually any payment terminal into a contactless payment solution. LoopPay says that their technology will work with 90% of the payment terminals currently in use.
The LoopPay MST technology began as a smartphone case that had the technology built in. It’s believed that with this acquisition Samsung will build the MST technology directly into the phone housing.
Financial details about the acquisition were not revealed however Samsung said in a statement that “We are excited to take our relationship with LoopPay to the next level, by bringing consumers a mobile wallet solution that is not just safe and reliable, but also widely accepted at more locations than any competing service,” said David Eun, EVP of Samsung’s Global Innovation Center. “Through this deal we can significantly accelerate our mobile commerce efforts. LoopPay’s outstanding leaders and team have deep-rooted relationships with banks, card networks and merchants that will complement those Samsung has established over the years.”
“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,” said JK Shin, President and Head of IT and Mobile Division at Samsung Electronics.
Margaret Keane, President and CEO of Synchrony Financial, the largest provider of private label credit cards in the U.S. and a leader in promotional financing, as well as an investor in LoopPay, commented, “This is great news for our customers who can access their cards and make payments using LoopPay’s contactless MST technology. Our goal is to offer valuable products for our clients, service providers, and our customers. We look forward to working with LoopPay and others to deliver secure mobile payment solutions for all of our 60 million active accounts.”
“LoopPay is focused on delivering a digital wallet solution that is dependable for consumers around the world, one that provides more value from card issuers and the merchants that serve them,” said Will Graylin, CEO of LoopPay. “We are excited to join the Samsung family to continue our goal of making smartphones trusted, secure smart wallets and unlock the limitless possibilities of mobile enabled commerce.”
Neither company commented on when we would see LoopPay integration with Samsung smartphones however Samsung is expected to announce a Samsung Galaxy S6 and a new Galaxy Note phone at Mobile World Congress in two weeks.