Samsung Buys out Mobile Wallet Startup
Published By : 19 Feb 2015 | Published By : QYRESEARCH
Samsung Electronics Co. Ltd. has acquired LoopPay, a mobile wallet startup company. This could possibly put Samsung head to head against Apply Pay, the mobile wallet service from Apply Inc.
The U.S. has been slow to catch on to the mobile wallet trend despite heavy outputs from Google, Apple, and PayPal by eBay. All three online wallet services have been converted to accommodate mobile wallet services.
The reason for this slow uptake has been attributed by experts to the reluctance of retailers in adopting to mobile payment methods. Most of them do not possess the software and hardware infrastructure that support mobile payments. Most of the services also do not offer sufficient conveniences that could be perceived as better than swiping a card, as said by executives at Samsung.
They added that Samsung is now at a unique position because LoopPay’s technology is different than conventional mobile wallet services. LoopPay uses existing magnetic stripe card readers during checkout and simultaneously changing them into contactless receivers. More than 90 per cent of the checkout counters support magnetic swiping, which could make LoopPay a significant booster for Samsung.
David Eun, the lead at the Global Innovation Center for Samsung, said that if they cannot solve the problem of merchant acceptance, then it cannot really be a customer’s wallet.
Injong Rhee is named as the head of Samsung’s currently unannounced mobile wallet service. He said that the company will soon reveal more details of the payment service. He did not respond regarding rumors that Samsung would be revealing their new venture during the Mobile World Congress in Barcelona. He did mention that the new phones that will be released by Samsung, such as the latest Galaxy smartphone, will have this service enabled.
Apple Pay was launched in September and allows iPhone users to pay by tapping a button.