Samsung has acquired LoopPay, a Boston-based mobile payments company whose technology could allow it to build a potential Apple Pay competitor.
LoopPay started as a basic snap-on mobile wallet device for the iPhone. It uses a patented technology called Magnetic Secure Transmission to turn payment terminals into contactless readers. This means LoopPay is accepted in over 10 million stores. To use LoopPay you would need to purchase one of a number of products that would let you access your mobile wallet. Currently, it takes the form of a card case that holds a little, battery-powered plastic puck inside. The LoopPay CardCase has a slide-out puck with a magnetic loop in it that can mimic a regular credit-card swipe when placed up against any regular credit-card terminal. This means LoopPay is accepted in over 10 million stores.
In its official statement, Samsung says LoopPay will help “strengthen the company’s overall efforts to provide users with seamless, safe, and reliable mobile wallet solutions.” It added that Samsung would be working toward building LoopPay’s technology into future devices, and stressed that this isn’t just about mobile payments: It’s about building a mobile wallet that is more comprehensive in scope, without requiring either merchants or consumers to change their behavior at a faster pace than they’re necessarily willing to accept.
LoopPay founders Will Grayling and George Wallner will join Samsung’s Mobile Division as part of the acquisition arrangement, and both the company’s talent and the tech will help the smartphone maker further its mobile wallet ambitions, according to a statement by Mobile Division President and Head of IT JK Shin.
“Today is a great day for LoopPay and all those who have supported us over the last few years,” said co-founder Will Graylin on the company’s website Wednesday. “Our vision of inspiring consumers to transition from a physical wallet to a truly digital wallet will continue.”
