Wednesday, February 25, 2015

Mobile Payment Wars Loom After Samsung Purchase


Samsung follows Apple into mobile phone payment services by snapping up a company which was crowdfunded in 2013.

US mobile payment firm LoopPay has been bought by Samsung - teeing up a battle with arch-rival Apple.

Apple moved into mobile payments with the launch of the iPhone 6 and 6 Plus last year and it looks like Samsung will be making a similar play.

While Apple's system requires shops to make extra investment in new systems, Samsung pointed out that LoopPay is "accepted at more locations than any competing service".


It uses the existing magnetic strip technology found in most US credit card machines.

LoopPay raised funding in 2013 through the Kickstarter crowdfunding website. To use the service, people had to buy a special phone case or dongle. But if it is integrated into Samsung phones then usage would likely rise dramatically.

The technology used by Apple Pay - near-field communications technology - has been around for years. However, its growth has been held back because stores have been unwilling to upgrade their tills. But the addition of the technology to the iPhone 6 means more retailers are willing to invest in it.

Samsung's newest flagship smartphone is due to launch on 1 March. There is speculation that it will include the US start-up's payment technology.

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