Samsung has moved forward with its efforts toward mobile payment system as the South Korean company recently finalized its acquisition of LoopPay, a mobile wallet firm that could aid Samsung's users in their payment transactions.
Basically, the company's deal with LoopPay will allow customers to purchase and pay for products and services using their smartphones. This feature has already been highlighted when Apple unveiled its own Apple Pay system.
However, Samsung had been previously working on mobile payments years before Apple took on the trend.
"Our vision of inspiring consumers to transition from a physical wallet to a truly digital wallet will continue," LoopPay co-founder Will Graylin stated in a note posted on the company's official website. "I'm most excited that Samsung shares this vision and has chosen to help change how we shop and pay for goods and services. We look forward to working with Samsung to offer the world's most secure and compelling mobile platform."
Although Samsung will be fully subsidizing LoopPay, the mobile-payments technology startup will remain an independent company that is based in Boston.
According to the South Korean tech giant, Graylin and co-founder George Wallner are expected to use a proactive approach in collaborating with Samsung's Mobile Division to make way for innovative mobile wallet services.
JK Shin, President and Head of IT and Mobile Division at Samsung Electronics, stated that the recent acquisition of LoopPay can be associated with the goal of developing secure and advanced mobile wallet experiences among users.
"This acquisition accelerates our vision to drive and lead innovation in the world of mobile commerce," Shin explained. "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."
Using LoopPay, an individual will have to purchase one of Samsung's smartphones and download the LoopPay app. His or her credit and loyalty cards should be added to the service. For payment transactions, the device should be held up to where a card is usually swiped in card readers.
LoopPay pointed out that its technology allows the transmission of the same type of signal that card readers obtain from a credit card's magnetic strip. The service is expected to work with Android 4.3 and above as well as iOS7 and above.
According to LoopPay's website, its mobile-payment system deal with Samsung guarantees much improved features compared to Apple Pay, which was criticized by the company for being available to only a limited number of banks, cards and devices.
Releasing its mobile payment system last year, Apple has now expanded Apple Pay to work on the iPhone 6 and iPhone 6 Plus as well as the latest iPads for app-based purchases. The system will also be incorporated in the Apple Watch, which will be unveiled in the spring.
