Samsung Acquires LoopPay, Boosts Mobile Payments Arm
The acquisition also called for closer ties between LoopPay founders, Will Graylin and George Wallner, and Samsung’s Mobile Division.
JK Shin, the president and head of IT and mobile for Samsung Electronics, said, “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.”
Both companies have benefited from a deeply rooted collaboration that first started when Samsung, facilitated by Samsung’s Global Innovation Center, invested in the Boston-based startup. Other early LoopPay investors include Visa and Synchrony Financial.
Fast-forward to today, the duo has been working on projects for next-generation Galaxy devices, which will be unveiled in the upcoming MWC 2015.
LoopPay provides the magnetic stripe transmission technology that works on over 90 percent of existing POS terminals. This allows merchants to keep their investments in new infrastructure and software very low, while catering to a wider range of alternative payment methods.
“Samsung’s acquisition of LoopPay signals how serious it is about building and launching a competitive mobile payments system in the United States. It also likely gives Samsung exclusive access to LoopPay’s technology, which enables mobile payments to be made at merchants who haven’t upgraded their point-of-sale technology to support newer contactless payment methods like NFC — of which there are many,” mentioned Bryan Yeager, eMarketer analyst.