Samsung’s ambitions to rival Apple in the mobile payments sector cost the firm a cool quarter of a billion dollars upfront, according to reports on Wednesday.
The LoopPay platform works with existing NFC readers, but also enables retailers to accept contactless payments using existing magnetic stripe card machines, without upgrading to expensive new terminals.
On the consumer side, LoopPay requires users to insert their device into a Card Case or own a device with the technology ingrained. They can then input their payment details via a companion app in order to begin making payments.
Samsung has built LoopPay’s patented Magnetic Secure Transmission, as well as NFC, into its latest smartphones, such as the Samsung Galaxy S6 and Galaxy S6 Edge.
The roll out will allow the Korean company to begin making inroads into the Apple Pay platform, which has enjoyed moderate success since rolling out in October 2014 in the United States.
Apple, Samsung and the likes of Google appear to have identified the mobile wallet as the next major revenue stream for the smartphone business, and the competition is only going to get more intense from here on in.
Samsung’s hefty investment in LoopPay tells us everything we need to know about its mobile payments ambitions.