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Samsung Takes On Apple Pay By Acquiring Mobile Wallet Startup LoopPay

Posted by samzenpus on from the circle-of-business dept.

An anonymous reader writes Samsung is buying major Apple Pay and Google Wallet competitor LoopPay. "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," JK Shin, Samsung co-CEO and head of the company's mobile business, said in a press release. "What's a real differentiator is this uses technology that's in stores today," David Eun, executive vice president of Samsung's global innovation center, said in an interview. "We don't have to wait for a point in the future where there are a lot more [NFC-enabled] terminals."

2 of 62 comments (clear)

  1. Strongly Worded... by Anonymous Coward · · Score: 5, Insightful

    Seems that "Takes On" is probably far too strong a term for what Samsung is doing. "Desperately tries to remain relevant by hitching itself to an already obsolete payment method" is probably closer to the truth.

    1. Re:Strongly Worded... by Rosyna · · Score: 5, Informative

      Correct, LoopPay only works with existing magnetic swipe readers. LoopPay works by basically cloning the credit card. The LoopPay devices sends out a magnetic field that is picked up by the magstripe reader in the POS terminal.

      LoopPay does not use NFC or RFID. Which also means it's great for those that want to commit credit card fraud since there is no verification or executable code to copy. Just load up the LoopPay device with multiple CC numbers, and see which ones work.

      LoopPay also does not work unless there is a magstripe reader in the POS device. In October 2015, retailers in the US will start being liable for fraud committed via the magstripe reader, meaning retailers likely won't be willing to accept magstripe cards, such as those the LoopPay copies.