Samsung Electronics’ acquisition of U.S. startup LoopPay may see it dominate the mobile payment space, experts say, upping the rivalry with long-standing competitor and current market leader Apple.
The South Korean giant announced the deal on Wednesday but exact terms have yet to be disclosed. Details of Samsung’s partnership with Massachusetts-based LoopPay first emerged in December following reports that the tech giant was in talks to develop a product to rival Apple Pay.
Samsung may be late to the mobile payment game, with Apple Pay operating since September, but LoopPay has one major difference: Unlike Apple Pay and Google Wallet, which rely on near-field communications (NFC), LoopPay says it is compatible with existing magnetic-stripe card readers, which form the majority of existing point-of-sale (POS) terminals, and doesn’t require any additional infrastructure.
LoopPay also works alongside NFC technology, the company said, making it more flexible than its peers… see more