Samsung has acquired LoopPay to rival Apple’s new mobile payment service called Apple Pay, which launched late in the fall of 2014.
Samsung (NASDAQ:SSNLF) has officially entered the mobile payment space by acquiring the mobile payment tech firm known as LoopPay. LoopPay had previously launched a payment solution that utilized a fob, instead of a mobile device, but it is believed that this will be the type of technology that Samsung will employ moving forward – and if nothing else – creates a starting point for the company to get really into the mobile payment space. One of the co-founders of LoopPay said on the company’s website, “Today is a great day for LoopPay and all those who have supported us over the last few years. Our vision of inspiring consumers to transition from a physical wallet to a truly digital wallet will continue.”
The acquisition will speed up Samsung’s mission to enter the mobile payment sector and compete with Apple Pay, which has gotten off to an incredibly hot start since launching last fall. The major draw with LoopPay is the fact that so much of the technology that they employ is already sitting in current terminals. The fact that the 90% of retail terminals that are out there – are already equipped to handle LoopPay, and subsequently Samsung’s payment system – really speaks volumes for what the company could do in terms of taking market share from Apple Inc. (NASDAQ:AAPL).
This would be a major move for the company if these figures did hold up. The fact that 90% of current point-of-sale systems in stores already would function with LoopPay and Samsung – would definitely cool the hot start that Apple has been off to. However, that would require the company actually to begin employing that technology sooner, rather than later since Apple will only continue growing their market share in the mobile payment space.
There has been a lot of competition within brands and smaller companies, but right now, the largest mobile payment names in the game are PayPal (NASDAQ:PYPL) and now Apple. While PayPal continues to run to the beat of its own drum, many have argued that Apple may at some point partner up with them, or attempt to acquire them. It remains to be seen though what kind of impact Samsung has in the mobile payment space and how they plan on implementing this technology.