Warning to Apple Pay – Samsung acquired LoopPay, the most accepted mobile wallet on the planet

Samsung Electronics Co., Ltd. announced that it has agreed to acquire LoopPay, the acclaimed mobile wallet solutions provider that turns existing magnetic stripe readers into secure, contactless receivers. LoopPay’s solution takes the form of a smartphone case or fob that synchronises with an app that stores the user’s card information and security credentials. Samsung was an early investor in the company, along with Visa and retail finance specialist Synchrony Financial.

Unlike Apple Pay, which is based on near field communications (NFC) and requires a contactless payment terminal to work, LoopPay uses its patented Magnetic Swipe Transmission (MST) technology, which uses the part of the merchant’s payment terminal normally used for reading a credit card’s magnetic strip. The advantage of this is that it works with 90% of the world’s card readers, with no investment in new infrastructure required by merchants.

According to www.totaltele.com, „There are two disadvantages to LoopPay though: it still requires the user to input a PIN number to authorise a payment, whereas Apple Pay transactions can be carried out using an iPhone’s fingerprint ID system, and it relies on dedicated hardware to work, while Apple Pay uses hardware integrated into its iPhones. However, LoopPay’s acquisition by Samsung will doubtless see MST technology appearing on its smartphones and wearables.”

Founded in 2012 in Boston, MA, LoopPay is accepted at more merchants than any other digital wallet solution. Over 10 million merchants accept LoopPay from Brasil to Italy, Hong Kong or Australia, and of course all around the US. „LoopPay is the most accepted mobile wallet on the planet. Today is 40 times more accepted than Apple Pay.” says Will Graylin, CEO of LoopPay.

Watch the video below to see how it works

https://www.youtube.com/watch?v=bw1l149Rb1k&width=500&height=350

“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.

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. The investment, which was facilitated by Samsung’s Global Innovation Center, helped fuel LoopPay’s MST technology development.

“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.”

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. “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.”

About LoopPay
LoopPay’s patented Magnetic Secure Transmission™ (MST) technology turns existing mag stripe readers into mobile contactless receivers without any changes or costs incurred by merchants or their payment processors. LoopPay’s digital wallet can store and use a wide variety of mag stripe cards including debit and credit cards, private label cards, gift cards loyalty cards and rewards cards. Access to the LoopPay app and data is password and PIN-protected and LoopPay encrypts and stores all card track data in secure memory within any LoopPay device. LoopPay is a Level One PCI Certified Payment Provider.