Samsung Acquires LoopPay – Introduces NFC And Magnetic Secure Transmission Methods

In recent today, Samsung has announced the acquisition of LoopPay. Yes! A mobile payment system which will help Samsung to compete against it's rivals like Google Wallet and the fierce Apple Pay. Yet, there are no details for how much has  Samsung payed for the mobile payment system but we have notify you as soon as the details are out.

Some of us are definitely not surprised by this because LoopPay and Samsung have co-worked in the past. Last month, LoopPay announced that it will launch cases with enabled mobile payment system for the Galaxy Note 4 and the Galaxy S5 which will be released later this year. The talks to acquire LoopPay started in December however, both companies had declined the notion for such a bargain. But it was all expected, since Apple Pay was introduced last fall and Samsung had to do something to compete with it in the mobile payment category. Samsung would have been just like all other companies for Apple if it did not introduced the mobile payment operation. This way Samsung is directly targeting Apple and lies in the upper league than all other smartphone companies.

Samsung was seeking to spend the reserved $56 Billion on M&A which will mark the company's growth for this year. The year 2014 was a difficult one for Samsung but now, it appears that acquisitions of this kind would be beneficial and a good fit for Samsung's business model.

LoopPay To Work Both Ways – NFC And Magnetic Secure Transmission

For those who are unaware of LoopPay, lets look inside some details. Apple Pay and Google pay both rely on NFC field of transmission but LoopPay has  a different medium to transmit. LoopPay works with a magnetic secure transmission which is similar to that of credit card swipe, which is backward compatible technology taking into account the legacy terminals and built in hardware options. Nonetheless, it also offers NFC transmissions as to keep up with the changing technology. To authenticate secure payments, all you need to do is take your device near the terminal of credit card swiping ... and that's it! This dual compatibility method would in term stick to the present as well as future proof, since NFC terminals are not so common.

The Samsung devices would secure all card information using fingerprint scanner, after the acquisition operation is complete. This system resembles that of the Apple pay. Moreover, LoopPay would be inly compatible with the host cases and keychains designed by LoopPay. We will see how Samsung integrate with loopPay when the acquisition is complete. Will Graylin and George Wallner will work enthusiastically with Samsung and its mobile payment division advancements.

This is it for now folks, do leave a comment for any question and do share what you feel about this acquisition and the mobile payment system, LoopPay.

Follow Wccftech on Google to get more of our news coverage in your feeds.