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 start-up, which Samsung snapped up back in February this year, set the Korean company back $250m (£158m), Recode sources claim.
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.
A branded Samsung Pay service will launch this summer, with Samsung claiming LoopPay integration will allow it to cover 90 per cent of U.S. retailers.
Read more: LoopPay: How Samsung plans to rule mobile payments
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.
Editorial independence
Editorial independence means being able to give an unbiased verdict about a product or company, with the avoidance of conflicts of interest. To ensure this is possible, every member of the editorial staff follows a clear code of conduct.
Professional conduct
We also expect our journalists to follow clear ethical standards in their work. Our staff members must strive for honesty and accuracy in everything they do. We follow the IPSO Editors’ code of practice to underpin these standards.
Editorial independence
Editorial independence means being able to give an unbiased verdict about a product or company, with the avoidance of conflicts of interest. To ensure this is possible, every member of the editorial staff follows a clear code of conduct.
Professional conduct
We also expect our journalists to follow clear ethical standards in their work. Our staff members must strive for honesty and accuracy in everything they do. We follow the IPSO Editors’ code of practice to underpin these standards.
