Samsung has recently taken a significant step into the world of mobile payments with its acquisition of LoopPay, a mobile-payments technology startup. This move is aimed at enhancing Samsung’s capability to offer customers the convenience of making payments through their smartphones. As the competition in this space heats up, with Apple’s Apple Pay gaining traction, it’s natural to wonder what sets LoopPay apart and whether it can achieve greater success.

LoopPay initially started as a snap-on mobile wallet device for the iPhone and has since evolved into a card case with a battery-powered plastic puck inside. This puck mimics a regular credit card swipe when placed near any standard credit-card terminal. The technology also includes a standalone fob for keychain use and a Square-type card swiper for loading credit cards into the accessory. LoopPay’s mobile-wallet app can store various types of cards, from credit cards to loyalty and gift cards, allowing for a versatile payment experience.

Unlike Apple Pay’s touch-and-go system, LoopPay requires a physical button press or app initiation to complete a transaction. While the current hardware may have some limitations, such as the need for recharging, future iterations are expected to address these issues. LoopPay also differs from Apple Pay in its use of actual credit card numbers instead of tokens for transactions, though security measures are in place to safeguard user data.

LoopPay’s magnetic loop technology enables payments at terminals lacking NFC technology, offering a broader reach for users. As the payment landscape evolves towards EMV terminals, LoopPay is poised to adapt and remain compatible with new systems. The transition from self-provisioning to remote provisioning could bring changes to how cards are authorized, potentially impacting loyalty card integration.

Looking ahead, Samsung aims to integrate LoopPay’s technology directly into its devices, eliminating the need for separate accessories. This integration could open up possibilities for wearable mobile payments, where LoopPay’s system could be incorporated into smartwatches or other wearables. The future of LoopPay under Samsung’s ownership holds promise for innovations in mobile payment technology.

For the latest updates on Samsung’s mobile-payment advancements, stay tuned for news from Mobile World Congress in Barcelona and follow our website for more information on this exciting development.