After Apple’s announced their mobile payments system, there was a lot of buzz around the idea, but overall, it was very well received. Also, the Cupertino-based company’s competitors definitely started thinking at coming with something similar.
South Korea strikes back
The first move was made by Samsung, by acquiring the U.S.-based mobile payments firm LoopPay, in order to counter Apple Pay, according to Computer World.
LoopPay makes small add-on devices, able to transmit your credit card’s information, through a mobile app. These tiny devices are integrated in smartphones, which, by holding them a few centimeters away from a magnetic reader, allowing you to make a wireless payment.
Unlike Apple Pay, which uses NFC, Samsung will use Magnetic Secure Technology. To be more specific, your phone will generate a magnetic field, turning card readers into contactless payment modifications. Basically, you will be able to use your phone in way more locations, as you won’t need terminals that accept NFC signals anymore.
LoopPay claims that their solution will work with about 90% of point-of-sale terminals in the U.S., according to the same source. If this will actually happen, it will give Samsung a massive advantage when it comes to mobile payments, as NFC is now available in less than 10% of U.S. retailers.
Even your old smartphone can benefit from it!
The best part about this deal is that the technology will be available on every smartphone, by attaching a small rectangular on the back of the device or to its case. On the other side, Apple Pay works just with the iPhone 6 or with certain iPad models.
As from a regular user’s point of view, this is nothing but great news! Of course, the mobile payments’ adoption rate is still pretty low, but if this feature will be available to more phones, not just iPhones, we might see people actually stop carrying their wallets when going shopping.
What do you think about this? Anybody looking forward to see what LoopPay will bring to Samsungs?