Back in February, Samsung acquired LoopPay, a start-up located in Massachusetts, to bolster its presence within the mobile payment game and help better tackle the likes of Google’s Wallet, PayPal as well as the relatively new Apple Pay system. At the time, it wasn’t known simply how much the transaction had cost Samsung, these days various sources report that the price tag was approximately $250 million. This number could rise further depending on any performance related earnouts, although such terms are unknown.
A Samsung spokeswoman and LoopPay CEO Will Graylin both declined to discuss the figure.
LoopPay’s technology is essential for Samsung the way it allows its new phones, such as Galaxy S6, to mimic a typical card swipe, and therefore Samsung Pay should work everywhere that currently accepts card payments. This gives it a benefit over Apple Pay or Google Wallet, which demands the retailer to fit NFC transactions. Samsung has additionally said that its payment platform will likely be compatible with NFC, that's gradually gaining presence in retails stores.
In related news, Samsung has announced that it will probably be closing down its Samsung Wallet service on June 30th. Tickets and reservations it is available after that date, but no new transactions will probably be accepted as soon as the end of June.
A Samsung spokeswoman and LoopPay CEO Will Graylin both declined to discuss the figure.
LoopPay’s technology is essential for Samsung the way it allows its new phones, such as Galaxy S6, to mimic a typical card swipe, and therefore Samsung Pay should work everywhere that currently accepts card payments. This gives it a benefit over Apple Pay or Google Wallet, which demands the retailer to fit NFC transactions. Samsung has additionally said that its payment platform will likely be compatible with NFC, that's gradually gaining presence in retails stores.
In related news, Samsung has announced that it will probably be closing down its Samsung Wallet service on June 30th. Tickets and reservations it is available after that date, but no new transactions will probably be accepted as soon as the end of June.
The company didn’t supply a reason for the closure, but it’s probably reliable advice that the launch build-up to Samsung Pay may have something to do with it. All could so far is always that Samsung is about to launch its new payment system sometime in H2 2015. September is regarded as a likely candidate, given how the IFA trade show and also the launch from the Galaxy Note 5 can take place that month.
LoopPay also previously announced they will make mobile payment-enabled cases for Samsung’s Galaxy Note 4 and Galaxy S5 handsets that might release sometime in 2015, that ought to help Samsung expand its mobile payment ecosystem.
Whether or you cannot LoopPay can help Samsung get to be the dominant force in mobile payments remains to wear. But mobile companies seem convinced that their goods and systems will replace our debit and credit cards from the not too distant future.