Samsung is the latest tech company to join the mobile payments bandwagon as it recently acquired LoopPay, a company specializing in mobile payments
The battle between Apple and Samsung continues. The latter bought up a mobile payments program called LoopPay, a tech company that creates small add-on devices for smartphones. These add-on devices transmit credit card information using the mobile. The devices work by holding the phone a few centimeters from the magnetic strip reader. All the financial transaction information is sent wirelessly to submit payments.
A look at how LoopPay works
The system’s Magnetic Secure Transmission (MST) fields are similar to those generated by a magnetic strip. It turns credit card readers into contactless payment devices minus the modifications.
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LoopPay’s technology is quite different from Apple Pay technology, which runs on Near field communication technology. NFC requires retailers to add special contactless payment terminals in their stores to accept the signals.
Samsung’s upper hand
Samsung may have the upper hand on mobile payments as LoopPay boasts it can work on roughly 90% of point-of-sale terminals. A representative for Samsung explained that although NFC debuted nearly a decade ago, it is only in about 10% of retailers in the United States. MST is far more accepted and more likely to reach mass adoption. LoopPay is good for retailers; it does not require a checkout device upgrade. However, users will need to acquire a rectangular dongle that attaches to the phone or case.
One of LoopPay’s current available products is a smartphone case that includes a storage compartment for a bank card and IDs. It retails for $59. The benefits of LoopPay’s mobile pay technologies are numerous. It works with thousands of cards, including credit, debit and gift cards. It also works with a simple press of a button with no wallet needed. By comparison, Apple Pay is still relatively new, and it is still growing.
Samsung’s representative added that more details on the acquisition are coming soon.