Samsung acquires LoopPay, gears up to take on Apple Pay

Posted:
in iPhone edited February 2015
Just over two months after word first broke that Samsung was considering an Apple Pay competitor, the South Korean conglomerate has reportedly acquired mobile payments startup LoopPay to bolster its efforts.




Samsung began talks with LoopPay in December to integrate the latter's magnetic payment technology into next-generation Galaxy devices. That partnership has apparently turned into an acquisition, and was first reported by Re/code.

"Today is a great day for LoopPay and all those who have supported us over the last few years," LoopPay cofounder Will Graylin wrote in an announcement. "I'm excited to let you know that LoopPay has signed an agreement to be acquired and become a wholly owned subsidiary of Samsung Electronics America, Inc."

Acquiring LoopPay would give Samsung a ready-made Apple Pay competitor, albeit one not on equal footing. Apple Pay is based on special behind-the-scenes technology and works directly with credit card payment networks and banks, while LoopPay largely mimics normal credit card swipe functionality.

That could prove a problem for Samsung, as the U.S. is set to follow a number of other nations in eschewing swiped card transactions for EMV technology. The EMV standard depends upon a small chip embedded in the card to authorize transactions, rather than reading data from the magnetic strip.

On the other hand, LoopPay is currently compatible with a far wider array of credit cards and merchants than NFC-based Apple Pay, which requires time-consuming technological integration for participating banks and upgraded payment terminals at merchant locations. That could give Samsung a leg up in adoption as it works to add EMV functionality.

There is no word on the acquisition's financial details or prospective closing date.
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Comments

  • Reply 1 of 63
    slurpyslurpy Posts: 5,085member
    You know, I was hoping they would do this.

    I don't remember the last time I even swiped a credit card, either in Canada or the US. Samsung is right on time, jumping on a technology which is on the verge of obsolesce because of a case of misguided desperation. This implementation is such a poorly thought out hack. I look forward to this epic failure. I assume it won't even be implemented until the S7 or other future phones, since there's no time to integrate it into the S6. Once again, Samsung takes shortcuts which do nothing to move things forward, but only to gain some temporary advantage and bullet point.

    Congrats on the Loop pay execs though, no doubt they're quite happy about their payday.

    This is exactly like the Touch ID situation, where Samsung introduced a much shittier solution 6 months later in their usual LOOK WE HAVE THAT TOO strategy.
  • Reply 2 of 63
    Lol.

    Everyone can copy Apples Pay system.

    But the system itself is not why apple is successful.

    They are successful because of the TRUST that Apple has BUILT over the decades.
  • Reply 3 of 63

    So, Samsung is now competing with Google Wallet AND Apple Pay, eh? Hmmm...

     

    I think this means Google Wallet has one less Android manufacturer as a supporter. Funny that it just happens to be the largest Android manufacturer.

     

    I think Apple is going to be in an even better position going forward.

     

    Google Wallet? Not so much.

     

    Samsung/LoopPay? Looking forward to seeing the bravado Samsung spews in Barcelona in approximately two weeks.

  • Reply 4 of 63
    jungmarkjungmark Posts: 6,628member
    Sammy will somehow screw it up.
  • Reply 5 of 63
    MacProMacPro Posts: 17,875member
    9secondko wrote: »
    Lol.

    Everyone can copy Apples Pay system.

    But the system itself is not why apple is successful.

    They are successful because of the TRUST that Apple has BUILT over the decades.

    Plus that much maligned originally, 'walled garden'.
  • Reply 6 of 63

    It's funny to read the comments on sites like Engadget. LoopPay will be soon completely redundant technology unless they have something using NFC coming up.

     

    Mimicing the signal the magnetic card reader sees when it reads the magnetic strip. WTF. Here in Europe it's even not possible anymore to pay using the magnetic strip of the card. It's all EMV + pin.

     

    Also proofs why the magnetic strip is so completely insecure for paying via terminals.

     

    I wish Samsung good luck selling this outside the US.

  • Reply 7 of 63
    cpsrocpsro Posts: 2,428member
    Quote:

    Originally Posted by jungmark View Post



    Sammy will somehow screw it up.



    No need. LoopPay is already screwed.

  • Reply 8 of 63
    nagrommenagromme Posts: 2,834member
    This gets them a (soon to be obsolete) data transmission technology.

    Now all they need are:

    - A biometric technology

    - A secure enclave

    - A tokenization technology

    - User-facing software technology

    If they get all that together, and it works AS well as Apple Pay (speed, convenience, security), they've really got something!

    Then they can switch to NFC later.
  • Reply 9 of 63
    Quote:

    Originally Posted by nagromme View Post



    This gets them a (soon to be obsolete) data transmission technology.



    Now all they need are:



    - A biometric technology



    - A secure enclave



    - A tokenization technology



    - User-facing software technology



    If they get all that together, and it works AS well as Apple Pay (speed, convenience, security), they've really got something!



    Then they can switch to NFC later.



    And if they did all that, they'd be in violation of Apple's patents. :D

  • Reply 10 of 63
    512ke512ke Posts: 781member

    No, Samsung, Mighty Google is not going to let one measly Android manufacturer develop its own payment system. Google will get all its underlings under control and Google will control Android's ONLY payment system.

     

    At least that's my prediction. Google cracks the whip.

  • Reply 11 of 63
    sflocalsflocal Posts: 4,386member

    And the same tired song will be played.



    Samsung waits for Apple for direction.



    Samsung copies Apple's lead.



    Samsung hails its "innovation"



    Samsung shows ineptness and cluelessness and botches the technology.



    Samsung quietly shelves it to gather dust



    Samsung (and Fandroids) "magical" pretend it all never happened.

  • Reply 12 of 63
    Quote:

    Originally Posted by SpamSandwich View Post

     
    Quote:
    Originally Posted by nagromme View Post



    This gets them a (soon to be obsolete) data transmission technology.



    Now all they need are:



    - A biometric technology



    - A secure enclave



    - A tokenization technology



    - User-facing software technology



    If they get all that together, and it works AS well as Apple Pay (speed, convenience, security), they've really got something!



    Then they can switch to NFC later.



    And if they did all that, they'd be in violation of Apple's patents. :D


     

    All that and they still wouldn't be 64-bit hardware... Samsung/Loopy are sooo screwed.

  • Reply 13 of 63
    sflocal wrote: »
    And the same tired song will be played.


    Samsung waits for Apple for direction.


    Samsung copies Apple's lead.


    Samsung hails its "innovation"


    Samsung shows ineptness and cluelessness and botches the technology.


    Samsung quietly shelves it to gather dust


    Samsung (and Fandroids) "magical" pretend it all never happened.

    Samsung and Fandroids pretend Apple never invented anything and complain bitterly that Google Wallet was first.
  • Reply 14 of 63

    At least they bought this time instead of just copying.

  • Reply 15 of 63
    calicali Posts: 3,495member
    9secondko wrote: »
    Lol.

    Everyone can copy Apples Pay system.

    But the system itself is not why apple is successful.

    They are successful because of the TRUST that Apple has BUILT over the decades.

    Not true.

    So far NO ONE can copy Apple's system. Just sit back and laugh at the competition fall on their faces.

    Wait.... You hear that?
    Sounds like Eric Schidt crying in a corner after losing his biggest friend.
  • Reply 16 of 63
    Those lame Samsung commercials that depict iPhone users as dorks, lemmings, and old people. Who's laughing now?
  • Reply 17 of 63
    Now's the time to sell my LoopPay device!!
  • Reply 18 of 63
    fallenjtfallenjt Posts: 3,961member

    Something that Samsung just don't get: it's not about contactless payment, but the entire security behind it. Apple Pay uses tokenization  which only sends one-time-use code to POS.  This LoopPay is just the same as using credit card without wiping since it sends all CC# and customer information to POS through something called Magnetic Secure Transmission.  They don't get it, do they? Information stored in POS is bad for customers. Samsung execs needed to be fired.

  • Reply 19 of 63

    Amusing. Apple builds ApplePay from the ground up, working out all the kinks (or as many as is possible).

     

    Samsung needs a buy-in to do the equivalent.

     

    Pretty much tells you all you really need to know....

  • Reply 20 of 63
    fallenjtfallenjt Posts: 3,961member

    My bet is: this "SamPay" will be DOA. Google Wallet is 10x better (Tokenization, NFC...) and still failed to take off. 

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