Samsung has agreed a deal to buy mobile wallet outfit LoopPay, giving the electronics giant a new weapon in its brewing battle with Apple for the m-payments market. Financial terms have not been disclosed.
LoopPay's patented technology turns existing magnetic stripe readers into contactless receivers. On its website, the firm boasts that this means that it can work with around 90% of existing POS terminals, compared to just five percent for Apple Pay.
Samsung has been working with LoopPay since joining Visa in a funding round last summer. In December, Re/code reported that the two firms were working on an Apple Pay rival ahead of the launch of the Galaxy S6 handset this spring.
LoopPay founders Will Graylin and George Wallner will work with Samsung’s mobile division as it seeks to tap the startup's Magnetic Secure Transmission technology to "drive the next wave of innovation in the digital smart wallet," says a statement.
David Eun, EVP, global innovation centre, Samsung, says: "We are excited to take our relationship with LoopPay to the next level, by bringing consumers a mobile wallet solution that is not just safe and reliable, but also widely accepted at more locations than any competing service."