Sources said that the Apple Pay rival will be based on LoopPay technology

Yesterday, Samsung sent out invites to media, analysts and developers for its March 1 Galaxy Unpacked event in Barcelona, Spain. The Korean company is widely expected to unveil Galaxy S6 and Galaxy S6 Edge with dual-edge display at the event. Reports suggest that the device will have a metal casing and a toned-down version of TouchWiz interface.

Galaxy S6 To Debut Mobile Payment System Samsung Pay

Samsung signs deal with Visa

Sources familiar with the matter told South Korea’s D Daily that Samsung is gearing up to introduce a mobile payment system with the Galaxy S6. The company has struck a deal with Visa for the new payment system called Samsung Pay. Sources said that the Apple Pay rival will be based on LoopPay technology.

Samsung users will use a new fingerprint sensor to make payments. ValueWalk reported last month that the Galaxy S6 will have a non-swipe fingerprint scanner. Customers will have to place their finger on the Home button and hold for a moment. In contrast, the Galaxy S5 featured a swipe type of fingerprint sensor. Notably, the new sensor in Galaxy S6 will still offer the TouchWiz functionality like Pay with Paypal, Private Mode, and signing into Samsung account.

Galaxy S6 to use LoopPay’s MST technology

What’s more, LoopPay is reportedly preparing touch-enabled payment cases for the Galaxy Note 4 and Galaxy S5. The Boston-based start-up’s payment technology uses magnetic waves to replicate the magnetic stripes of a credit card. LoopPay said that it will bring secure tokenization this year, which is used in Apple Pay. Secure tokenization hides the actual account numbers from merchants.

Apple Pay relies on NFC technology that requires retailers to install NFC readers. But Samsung Pay will use LoopPay’s magnetic secure transmission (MST) technology. It enables conventional credit card terminals and smartphones to communicate without the need of any extra hardware from the retailers. With the Samsung deal, LoopPay is expected to get a big boost in its user base.