Samsung in talks with LoopPay to launch Apple Pay competitor in 2015

Posted:
in iPhone edited December 2014
In a bid to catch up with Apple Pay, Samsung is said to have turned to a startup company, LoopPay, in hopes of debuting its own mobile payments service with wide compatibility in 2015.




Citing multiple sources familiar with the talks, Re/code reported on Tuesday that Samsung's plans for a contactless payment service would be very similar to Apple Pay, allowing customers to use their Samsung phone to authorize credit card transactions at retail stores. Key to the deal is said to be Massachusetts-based LoopPay, which has reportedly created a prototype of its system working on a Samsung phone.

LoopPay's technology is currently used in a fob and a digital payment card and does not require near-field communications, like Apple Pay or Google Wallet. Instead, LoopPay uses what it calls "magnetic secure transmission," which allows users to tap a device near a credit card magnetic swipe terminal.

Currently, LoopPay is compatible with a variety of smartphones, including Apple's iPhone. Plugging the company's fob into an iPhone headphone jack and using the LoopWallet app, users can swipe in their credit and debit cards, which then scans them into the system.




The fob can be used alone, where it completes transactions with a default card and no security. Or when paired with a smartphone, users can select the card they wish to use and enter a PIN number to authorize the transaction. There's also a LoopPay smartphone case with detachable fob.

It's unclear how well LoopPay's technology will fare in the coming years, however, as merchants are expected to phase out traditional magnetic swipes in favor of new secure EMV cards using an authorization process known as chip and signature. Apple Pay and its NFC-based technology will not be affected by the EMV switch, which will take place in October of 2015.

But LoopPay has also been looking into implementing a tokenization system, much like Apple Pay, to enhance security in future versions of its technology. Tokenization authorizes a transaction without allowing the merchant to receive the actual payment information.




Samsung, of course, has a long history of reacting to Apple's new features and services, earning it a "copycat" reputation from critics. For example, after Apple launched Passbook in 2012, Samsung announced its own Wallet application in early 2013, complete with an icon that bore a striking resemblance to Passbook.

And when the iPhone 5s launched with the Touch ID fingerprint sensor, Samsung was quick to include a fingerprint scanner in its flagship Galaxy S5 handset. However, while Apple's fingerprint sensor was praised for convenience and ease of use, Samsung's implementation utilized a legacy swipe-style fingerprint reader that was panned for being subpar.

Touch ID went on to become an integral part of the security of Apple Pay, allowing users to securely authorize transactions from their iPhone 6 or iPhone 6 Plus with just a scan of their finger.



Apple itself accused Samsung of stealing its ideas in court in 2011, when it filed a lawsuit alleging the designs of Samsung hardware and software infringed on Apple patents. The litigation dragged on around the world for years before both Samsung and Apple announced in August that they have settled all of their non-U.S. patent disputes out of court.

Apple and Samsung are still at odds in America, though, where a judge recently ruled that Apple could be entitled to ongoing royalties from patent infringing Samsung products. A California court found Samsung guilty of infringing on Apple's patents in 2012, but the case has been mired in appeals ever since.
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Comments

  • Reply 1 of 75
    ????????????
  • Reply 2 of 75

    This just in: Samsung continues to rip off Apple at every opportunity.

  • Reply 3 of 75
    Quote:

    Originally Posted by TheWhiteFalcon View Post

     

    This just in: Samsung continues to rip off Apple at every opportunity.


     

    Samsung launches SPay

     

    - only accepted at all veterinarian's offices <img class=" src="http://forums-files.appleinsider.com/images/smilies//lol.gif" />

  • Reply 4 of 75
    "In a bid to catch up..."? But but but how do we know Samsung wasn't working with LoopPay three years ago¿¡
  • Reply 5 of 75
    MacProMacPro Posts: 18,443member
    So the millions of <11 year olds with low end Samsung crap phones will be able to pay for their bubble gum wirelessly. Sweet.
  • Reply 6 of 75
    For a second, I misread it as PoopPay. Since this is Samsung, it's probably not too far apart.

    But really, credit card data on the most insecure mobile platform?
  • Reply 7 of 75
    jkichlinejkichline Posts: 1,336member

    Good luck there, Sammy. Sounds like another hack job to stick on your "features" list to make yourself appear relevant to uneducated consumers.

  • Reply 8 of 75
    rogifanrogifan Posts: 10,669member
    This just in: Samsung continues to rip off Apple at every opportunity.
    Since this isn't based on Apple's implementation (i.e. NFC and tokenization) how are they ripping Apple off? And if they're ripping off Apple are they ripping off Google Wallet too?
  • Reply 9 of 75

    The first chart is a joke. As soon as retailers switch to chip and pin, LoopPay will cease to work and the percentages will be inverted because every chip and pin - enabled reader that has come out in the last two years is NFC-enabled. 

     

    So Samsung once again bets on the wrong horse in their pursuit to out-Apple Apple. 

  • Reply 10 of 75
    rob53rob53 Posts: 2,102member

    Nice product. I have to plug in a device into my stereo jack to make it work. That should work very well for all those <11 kids who will have to actually unhook their earbuds to make a purchase. As usual, it's just another thing to lose. Does this fob have the users credentials in them so it could be moved from one phone to another? Wonder how many banks will sign up for this system. All it will take is one piece of Android malware and your bank account is emptied.

  • Reply 11 of 75
    rogifan wrote: »
    Since this isn't based on Apple's implementation (i.e. NFC and tokenization) how are they ripping Apple off? And if they're ripping off Apple are they ripping off Google Wallet too?

    Yes and yes. I think we all knew Samsung's day of reckoning would come. The split with Google will come and it will be beautifully ugly.
  • Reply 12 of 75
    Quote:

    Originally Posted by Rogifan View Post





    Since this isn't based on Apple's implementation (i.e. NFC and tokenization) how are they ripping Apple off? And if they're ripping off Apple are they ripping off Google Wallet too?



    It's based on stealing the Apple features and ideas. If you go that far you can also argue that the fingerprint scam (not SCAN) was also not an Apple rip off since the scanner is not circular and the scan works by swiping not by touching. The same can be said about the Passbook copy-scam.

  • Reply 13 of 75
    rogifanrogifan Posts: 10,669member
    supersheep wrote: »
    The first chart is a joke. As soon as retailers switch to chip and pin, LoopPay will cease to work and the percentages will be inverted because every chip and pin - enabled reader that has come out in the last two years is NFC-enabled. 

    So Samsung once again bets on the wrong horse in their pursuit to out-Apple Apple. 

    Funny how everyone made such a big deal about NFC when Apple didn't suport it but now that iPhones use it NFC is cumbersome, expensive, not widly adopted, etc. And ?Pay, is doomed because it doesn't cater to retailers (because apparently they're more important than consumers).
  • Reply 14 of 75

    LEAD Technologies Inc. V1.01

  • Reply 15 of 75
    rogifanrogifan Posts: 10,669member
    andreid wrote: »

    It's based on stealing the Apple features and ideas. If you go that far you can also argue that the fingerprint scam (not SCAN) was also not an Apple rip off since the scanner is not circular and the scan works by swiping not by touching. The same can be said about the Passbook copy-scam.

    Motorola Atrix had fingerprint scanner before Apple or Samsung. Google Wallet existed before ?Pay Apple isn't usually the first to something, but they're usually the first to get the UX right. Mobile payments isn't an Apple invention and I'll make a wager right now that whatever Samsung rolls out it won't be as elegant and user friendly as ?Pay.
  • Reply 16 of 75
    Quote:

    Originally Posted by Rogifan View Post





    Funny how everyone made such a big deal about NFC when Apple didn't suport it but now that iPhones use it NFC is cumbersome, expensive, not widly adopted, etc. And ?Pay, is doomed because it doesn't cater to retailers (because apparently they're more important than consumers).



    I believe Apple will deliver something within about a year, that will make retailers more than happy. But they will do it right by still protecting the users' data. No doubt there will be value cards, vouchers and loyalty discounts. I guess these things would be opt-in and based on passbook. So if Apple is working on this, and I strongly believe so, this might be a tentpole feature for iOS 9. And this would suck the air out of all these other mobile paying systems that are merely catching up.

  • Reply 17 of 75
    Will be great if you want to buy Macadamia nuts in a bag. A typical Korean copy process as pushed by Same Song.
  • Reply 18 of 75
    mac_128mac_128 Posts: 3,452member
    supersheep wrote: »
    As soon as retailers switch to chip and pin, LoopPay will cease to work
    I doubt that. First, all the latest POSTs I've seen have Both contactless and magnetic card readers, and that legacy provision is likely going to remain in all new POST purchases made prior to the 2015 mandate. Banks aren't going to switch all of the customers to chip and pin immediately after the mandate deadline. It's going to take time, and there will still be holdouts who haven't upgraded their systems. My guess is that people will still be swiping cards in some fashion for at least a decade to come ... I don't see gift cards in particular moving to more expensive chip and pin anytime soon, and that's plenty of time for Samsung to adapt their system.
  • Reply 19 of 75
    tommcin wrote: »
    Will be great if you want to buy Macadamia nuts in a bag. A typical Korean copy process as pushed by Same Song.

    Who wants a nut sack?
  • Reply 20 of 75
    lkrupplkrupp Posts: 7,449member

    Why does this not surprise me?

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