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February 19, 2015updated 19 Aug 2016 4:01pm

Samsung buys LoopPay to compete against ApplePay

LoopPay does not require retailers to install additional equipment to use the service.

By CBR Staff Writer

Samsung has acquired mobile payment company LoopPay, indicating its interest in launching an Apple Pay like service.

According to LoopPay, its patented Magnetic Secure Transmission MST technology converts normal store payment terminals into contactless readers.

Retailers require no additional equipments, which makes it more appealing to them.

On the other hand, Apple Pay requires retailers to install near-field communication systems making retailers reluctant to adopt the system, with many retailers in the US including Wal-Mart, CVS Health, already having their own systems.

Users can make payments through the LoopPay app by selecting the a chosen card including gift and loyalty cards.

According to reports, the Mobile payments service is picking up slowly despite tech giants like Apple, Google, and eBay launching their own services.

Reuters cited Samsung executives as saying that the low rate of adoption is likely due to the reluctance shown by retailers due to the additional hardware and software infrastructure required for the system to work.

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However, LoopPay’s technology is different as it works off the existing magnetic-stripe card readers at checkout.

Samsung along with Visa and Synchrony Financial had invested in the payment service prior to the acquisition.

Samsung Electronics Mobile Division President JK Shin said: "This acquisition accelerates our vision to drive and lead innovation in the world of mobile commerce.

"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."

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