Samsung has announced its acquisition of LoopPay, a point-of-sale (POS) solution that enables magnetic stripe readers to read credit card information from a device.
Systems like Apple Pay and Google Wallet have similar systems, but LoopPay claims their technology is “merchant-ready” in 90 per cent of U.S. retail locations, as opposed to the 5 per cent currently able to work with Apple Pay.
The company’s patented technology, Magnetic Secure Transmission™ (MST), allows payment terminals to become contactless readers. Credit cards, debit cards, even gift, loyalty and private label cards from specific companies, can be stored in LoopPay, ready for the user to choose from within the app.
“I’m excited to let you know that LoopPay has signed an agreement to be acquired and become a wholly owned subsidiary of Samsung Electronics America, Inc.” Will Graylin, LoopPay co-founder, said on the official announcement page.
“Our vision of inspiring consumers to transition from a physical wallet to a truly digital wallet will continue. I’m most excited that Samsung shares this vision and has chosen to help change how we shop and pay for goods and services. We look forward to working with Samsung to offer the world’s most secure and compelling mobile platform.”
LoopPay’s MST technology works by generating changing magnetic fields over a very short period of time, thanks to an alternating current running through an inductive loop. A credit card reader’s magnetic read head receives the current, a signal that emulates the same magnetic field change as a mag stripe card when swiped within a 3-inch distance from the read head.
In other words…
