Samsung to acquire digital wallet platform—and Apple Pay competitor— LoopPay

Mountain View, Calif. -- Samsung Electronics Co. is making a major commitment to mobile payments with its agreement to acquire U.S. startup LoopPay, a mobile wallet solutions provider that turns existing magnetic stripe readers into contactless receivers. The acquisition will put Samsung up against mobile payment services, including Apple Pay and Pay Pal. According to various reports, Samsung plans to integrate LoopPay's technology in one of its upcoming flagship phones.



According to a statement released by the two companies, LoopPay’s technology has the potential to work in approximately 90% of existing point-of-sale (POS) terminals, with no investment in new infrastructure required by merchants.



“This acquisition accelerates our vision to drive and lead innovation in the world of mobile commerce. Our goal has always been to build the smartest, most secure, user-friendly mobile wallet experience, and we are delighted to welcome LoopPay to take us closer to this goal,” said JK Shin, president and head of IT and mobile division at Samsung Electronics.



Samsung has an existing relationship with LoopPay as a strategic investor along with Visa and Synchrony Financial.



“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,” said David Eun, executive VP of Samsung’s Global Innovation Center.



“Through this deal we can significantly accelerate our mobile commerce efforts. LoopPay’s outstanding leaders and team have deep-rooted relationships with banks, card networks and merchants that will complement those Samsung has established over the years.”