Samsung today formally took aim at Apple Pay with its acquisition of LoopPay, a mobile wallet firm that lets users pay with their phones.
"Our vision of inspiring consumers to transition from a physical wallet to a truly digital wallet will continue," co-founder Will Graylin wrote in a note on the LoopPay website. "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 will become a wholly owned subsidiary of Samsung Electronics America, Inc., but will remain an independent team based in Boston. Samsung said Graylin and co-founder George Wallner "will work closely with Samsung's Mobile Division" in order to "help drive the next wave of innovation in the digital smart wallet."
"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," said JK Shin, President and Head of IT and Mobile Division at Samsung Electronics.
Samsung said it became a strategic investor in LoopPay last year alongside Visa and Synchrony Financial. When the Visa investment was announced in July, LoopPay said that it also had "other strategic partners not yet named." Then in December, reports emerged that Samsung was in talks to acquire LoopPay.
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With LoopPay, you purchase one of the company's devices - a phone case, fob, or card - and then download the LoopPay app for iOS or Android, and add your credit and loyalty cards to the service. To pay, hold it up to where you would normally swipe a card. LoopPay says its technology wirelessly transmits the same type of signal a card reader receives from the magnetic strip on your credit card. It should work with iOS 7 and above and Android 4.3 and above.
LoopPay appears well aware of the comparisons to Apple Pay, and even features a LoopPay vs. Apple Pay section on its website. LoopPay criticized Apple for its lack of availability, supported cards and banks, and smartphones.
Apple Pay debuted in the fall and works on the iPhone 6 and iPhone 6 Plus, as well as the new iPads for app-based purchases. Cupertino has slowly been ramping up the number of Apple Pay partners, and the service will also work on the Apple Watch when it debuts in the spring.