Samsung Electronics is to acquire LoopPay, a mobile wallet solutions provider that turns magnetic stripe readers into secure, contactless receivers. Under the terms of the deal, LoopPay will become a wholly-owned subsidiary of Samsung and the company founders, Will Graylin and George Wallner, will work closely with Samsung’s mobile division.
The acquisition will enable Samsung to compete with Apple’s near-field communication (NFC) technology, which enables mobile payment systems. LoopPay said that its technology, which was launched last year, has the potential to work in approximately 90% of existing point-of-sale terminals (according to its own internal research) without the need for further investment by retailers.
However, sources suggest that the LoopPay system has not worked well with some older readers, leaving some outlets unable to process LoopPay transactions. The system also does not work well with machines which require the customer to fully insert a card.
