Samsung Ready to Go Head to Head With Apple Pay
Why the Korean electronics company acquired LoopPay.
— -- Samsung is ready to challenge Apple Pay.
The Korean electronics company announced today it is buying mobile payments start-up LoopPay, setting up another head-to-head match-up with its perennial rival.
In its current form, LoopPay is available as a phone case or a key fob. However, the acquisition sparks the possibility that the technology could be integrated into one of Samsung's future smartphones.
"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 of Samsung, said in a statement.
Here's a breakdown on how LoopPay, in its current form, differs from Apple’s mobile payments solution.
What the Customer Needs
Using Apple Pay for purchases at brick-and-mortar stores requires an iPhone 6 or iPhone 6 Plus. For LoopPay, the user will need a card retailing for $49.95. Various phone cases can also be purchased to hold the card.
How It Works
For Apple Pay, all users have to do is position their iPhone near one of the readers at a store, hold their finger on their Touch ID and they're good to go. The simple, swift checkout motion is made easy due to the Near Field Communication antenna in the iPhone 6, which connects with the payment point to complete the transaction. A vibration and a beep will let users know that checkout was successful.
When checking out, LoopPay users can either press a designated button on their device or open the LoopPay app. From there, they select the card of their choice, tap it on the credit card reader and they're all set. While Apple's rollout requires stores to have NFC readers, LoopPay can work on most infrastructures already in place, according to its website.
Security
With Apple Pay, a device account number and a dynamic security code are used to complete the transaction. LoopPay said it encrypts all customer data and stores it behind a locked PIN and password.
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