As soon as Apple Inc. announced Apple Pay during the launch of the iPhone 6 in September 2014 where Apple shared the details about the payments to be processed by Near Field Communications and all our credit/debit cards and VISA cards/loyalty cards would remain in one place, called a Wallet and we can use it instantly to make payments to almost any place supports the Apple Pay.
Samsung has announced to buy Loop Pay in competition with Apple Pay and if this happens then it would be a major milestone for Samsung as then they would not require an additional hardware for payments.
What is LoopPay?
LoopPay is the most accepted mobile wallet of the world and ranked number 1 in America. LoopPay just signed a contract to be acquired by Samsung Electronics America Inc. With this acquisition, there will be a platform that brings issuers, shop owners and consumers together for a seamless digital wallet experience. The LoopPay team will independently operate from Boston now. It was the company’s vision to inspire users to move from physical wallet to a digital wallet without any hassles. Samsung shared this vision and that is what brought these companies together to offer the world’s biggest and the most secure mobile payment platform.
LoopPay Vs ApplePay
- To be in any type of competition with Apple is a challenge in itself and LoopPay has taken this challenge and now with Samsung, they are set to outperform Apple Pay. Let us look at the differences:
- LoopPay works at less than 90% retail locations whereas Apple Pay works at only 5% locations.
- It supports more than 10,000 issuers whereas Apple Pay supports only 90+ issuers.
- LoopPay can be used on dozens of smartphones whereas Apple Pay works on a handful of Apple devices.
- With It in your pocket, you will never need to carry your wallet whereas with ApplePay you are never sure whether it will be accepted at the next shop you go to.
What’s in this deal for Samsung?
Samsung has a lot to win with the acquisition of LoopPay, though Samsung was already an investor in the company along with Visa Inc and Synchrony Financial. The terms of the deal were not made public, but it is evident that now Samsung has a great chance to get at Apple Inc., Samsung’s biggest rival. The technology of LoopPay will turn existing magnetic stripe card readers to secure, contactless receivers without any investment of machines or external hardware by the merchants.
The best part of this deal is that it can work on 90 percent of existing point of sale systems as reported by the companies recently. Now, it would be interesting to see how Samsung turns the tables in the favor with the help of LoopPay and it will be interesting to see them lock horns with the Cupertino-based giant to rule the digital payments.