LoopPay Mobile Payment System (Photo : LoopPay)
Samsung has taken a giant leap in its quest to offer a more holistic mobile payment service with its recent purchase of LoopPay.
LoopPay is a US-based startup digital device payment solution that incorporates an iOS or Android smartphone app, as well as other stand-alone devices.
The app enables mobile payments through magnetic credit card readers. This would allow Samsung to cover more areas for mobile payment schemes. This is, in theory, what makes it way ahead of another rising mobile payment solution, Apple Pay.
"The LoopPay technology is so compelling because of its coverage", said Dr. Injong Rhee, Executive Vice President of Samsung Mobile, in an interview with Tech Crunch.
Rhee cited other mobile payment solutions as still based on near-field technology that works on limited coverage.
"We see the Magnetic Secure Transmission (MST) technology that LoopPay owns has a lot of potential to really solve the end-user coverage issues with respect to point-of-sale terminals", Dr. Rhee added.
Samsung recognized the e-commerce potential of LoopPay right about the time it launched its Kickstarter campaign in 2013.
Talks about the rumored acquisition of LoopPay by the mobile giant company surfaced late last year of 2014. The purchase was only confirmed through an announcement made last Wednesday, Feb 18.
David Eun, Executive Vice President of Samsung's Global Innovation Center shared his excitement of taking next step in digital e-commerce by offering a mobile solution that is not just safe and reliable but is also widely accepted in most locations.
"LoopPay's outstanding leaders and team have deep-rooted relationships with banks, card networks and merchants that will complement those Samsung has established over the years", Eun added.
