Digital Wallets

Samsung Buys Mobile Payments Startup to Take on Apple Pay

Samsung Buys Mobile Payments Startup to Take on Apple Pay
Image credit: Loop Pay

With Apple Pay beginning to gain some traction, Samsung wants a piece of the mobile payments game. The South Korean tech giant has agreed to buy Mountain View, Calif.-based LoopPay, a mobile wallet service.

LoopPay says its technology "turns existing magnetic stripe readers into secure, contactless receivers." The company says its service has the potential to work in about 90 percent of existing point-of-sale terminals.

The companies did not disclose the financial terms of the agreement.

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As part of the deal, LoopPay founders Will Graylin and George Wallner will work closely with Samsung’s mobile division. It will be interesting to see if Samsung plans to integrate LoopPay technology into its forthcoming flagship smartphone, the Galaxy 6.

The digital wallet concept really has yet to catch on, but is making progress. Since launching in September, Apple's Apple Pay service has gained signed fair number of partners, including a growing list of banks and credit unions, as well as food and retail shops like McDonald's and Foot Locker.

Related: Samsung Plans to Use Cash Pile to Fund Growth, Acquisitions