Everyone is realizing that payments by mobile is the current market disruptor, and with that there are new mobile wallet products being unveiled across the globe. East Africa has seen tremendous growth in the sector and countries like Uganda now see higher numbers in mobile money account holders than in traditional banking.
In the growth of mobile payments, last year Apple introduced its mobile wallet product dubbed Apple Pay and now Samsung Electronics has moved to participate in the sector, with a new acquisition of an already established mobile payments solution going by the name LoopPay.
LoopPay functions just like the Apple Pay, and the only difference is that LoopPay is compatible with devices or smartphones that are not Apple supported, making it a direct competition since it can be used in the other range of smartphones.
LoopPay technology is available through an app that works by incorporating payment technology into a protective case, which is built to be used with top smartphones available in the market. The app allows users to provide details and store their payment card information.
With the information, the protective case or CardCase as it is also known then communicates with the tap-to-pay terminals provided for by merchants and retailers at various stores allowing the users to make mobile payments for their purchases.
Following the acquisition, founders of LoopPay will be joining Samsung’s mobile division to offer their talent and technology to the Korean smartphone maker, in order to provide further assistance in the realization of the company’s mobile wallet plans.
“We are excited to take our relationship with LoopPay to the next level, by bringing consumers a mobile wallet solution that is not just safe and reliable, but also widely accepted at more locations than any competing service,” says David Eun, Executive Vice President at Samsung’s Global Innovation Center.
The end of last year was home to rumours that the two companies were in negotiations about establishing an Apple Pay competitor, now the rumours have been confirmed as true with the acquisition announcement. As the development is still new, we will have to wait and see if the expected Galaxy S6 will feature any of the technology from LoopPay.
Samsung believes that with LoopPay having already established relationships with merchants, banks and card networks, the company’s mobile commerce efforts are set to see growth as they will complement the relationships Samsung currently has.