Samsung acquires LoopPay, gears up to take on Apple Pay
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.
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.
Comments
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.
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.
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.
Plus that much maligned originally, 'walled garden'.
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.
Sammy will somehow screw it up.
No need. LoopPay is already screwed.
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.
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.
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.
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.
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.
All that and they still wouldn't be 64-bit hardware... Samsung/Loopy are sooo screwed.
Samsung and Fandroids pretend Apple never invented anything and complain bitterly that Google Wallet was first.
At least they bought this time instead of just copying.
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.
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.
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....
My bet is: this "SamPay" will be DOA. Google Wallet is 10x better (Tokenization, NFC...) and still failed to take off.