Aside from the much awaited release of the Samsung Galaxy S6 during the company's Galaxy Unpacked 2015 event next month, Samsung is also expected to reveal its newly acquired mobile payment system that is said to be the newest rival of Apple Pay. Samsung announced that they were able to acquire the Massachusetts-based mobile payments firm LoopPay.
USA Today talked with LoopPay CEO Will Graylin to discuss the Samsung deal. He mentioned that the South Korean consumer and electronics company began investing in them since July 2014 after they learned about the mobile payment system through a Kickstarter campaign. Samsung also spent a lot of time with them to analyze how both companies can work together to present a better consumer experience when using their payment services.
Based on its website, LoopPay works as a "mobile wallet solution that allows consumers to pay with their mobile devices at most places and leave their wallets at home." It is made up of two parts. One is the LoopPay App where all the user's payment card details are stored, and the other one is the LoopPay device where the app is installed.
LoopPay uses the MST technology that produces varying magnetic fields at a certain amount of time. The signal received from the device through the magnetic fields imitates the same response that a credit card reader gets when the mag strip card runs through it.
Samsung Electronics' President and Head of IT and Mobile Division JK Shin also expressed their excitement at their latest acquisition.
He said, "This acquisition accelerates our vision to drive and lead innovation in the world of mobile commerce. Our goal has always been to build the smartest, most secure, user-friendly mobile wallet experience, and we are delighted to welcome LoopPay to take us closer to this goal."
The company is expected to launch its LoopPay service on March 1 at the Samsung event prior to the 2015 MWC.