After being rumored for a few months, it is now official. Samsung has acquired mobile payments company LoopPay. LoopPay is unique in the mobile payments market as it works with pre-existing magnetic strip card readers wirelessly.
No NFC is required, making it the most prevalent type of payment system to date. Samsung has stated the following:
“LoopPay has built an advanced and widely accepted contactless payment solution using its patented Magnetic Secure Transmission (MST) technology. LoopPay’s talent and technology, paired with Samsung’s world leading mobile technology, global presence, and distribution capabilities will help drive the next wave of innovation in the digital smart wallet.”
There’s no doubt that since the release of Apple Pay that mobile payments are growing in popularity with consumers. With Samsung purchasing LoopPay, there is no doubt that that growth will continue by possible integration into future hardware.
Based off the timing of this deal, it remains to be seen if this technology will be included in the upcoming Galaxy S6 due at MWC next month. But the more likely possibility is that we will have to wait for that.