Samsung is getting into the mobile payments business. The company on Wednesday revealed it has acquired Massachusetts-based startup LoopPay for an undisclosed sum.
David Eun, the Samsung executive responsible for the deal, said they are very focused on the next generation of software and services and that LoopPay will be joining their mobile division. He added that the mobile division is building a platform to provide payment-related services which will include tracking loyalty points and spending habits.
With the acquisition, Samsung is joining an increasingly crowded field that includes familiar foes like Apple as well as Google and PayPal. With LoopPay, however, Samsung is in position to circumvent one of the major hurdles that’s kept mobile payments at bay thus far.
As The Wall Street Journal notes, LoopPay doesn’t require merchants to upgrade their checkout devices. The magnetic induction technology it uses can simply be tapped against the strip reader already found in most stores.
The service is expected to launch alongside the company’s next flagship smartphone, the Galaxy S6. Samsung issued media invitations for an Unpacked event scheduled for March 1, just one day ahead of the annual Mobile World Congress trade show in Barcelona.