Samsung on Wednesday officially announced its acquisition of LoopPay, a mobile wallet provider that transforms existing magnetic stripe readers into wireless payment hubs. The deal is huge\u2014LoopPay could potentially work with 90-percent of existing point-of-sale (POS) terminals, giving Samsung phenomenal reach. Apple Pay may be the current darling of digital wallets, by Samsung\u2019s solution could be just as big, if not bigger.<\/p>\n
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Samsung president, JK Shin, said today\u2019s acquisition accelerates the company\u2019s vision to \u201cdrive and lead innovation in the world of mobile commerce,\u201d adding that the company has always been interested in building a digital wallet empire. LoopPay executives will be added to Samsung\u2019s mobile division as part of the acquisition, with plans to integrate LoopPay\u2019s technology into Samsung devices.<\/p>\n
Samsung\u2019s David Eun, who oversees the company\u2019s Global Innovation Center, made sure to point out that LoopPay is accepted at more locations than any competing service. And it\u2019s true: LoopPay could have an unstoppable global footprint thanks to Samsung\u2019s resources and the service\u2019s potential to work with existing POS terminals. If Samsung\u2019s LoopPay service does become a worldwide phenomenon, it could put a serious damper on Apple Pay\u2019s expansion plans.<\/p>\n
\u201cThrough this deal, we can significantly accelerate our mobile commerce efforts,\u201d Eun said. \u201cLoopPay\u2019s outstanding leaders and team have deep-rooted relationships with banks, card networks and merchants that will complement those Samsung has established over the years.\u201d<\/p>\n
With the acquisition now in place, Samsung is all but set to talk more in-depth about its plans at Mobile World Congress next month, where we\u2019re expecting the company to announce the Galaxy S6, and possibly the curved S6 Edge as well.<\/p>\n