Samsung teamed up with LoopPay to build payment system, a copy of Apple Pay?

Samsung has now negotiated a deal with a paying start-up, LoopPay, which will help Samsung launch a wireless mobile payment system that rivals Apple in 2015, according to many sources. New technology allows the use of mobile Samsung phones to be in the physical store to make payments, replacing credit card or cash payments.

It is not clear whether Samsung has reached a deal with LoopPay. Sources say there is still a possibility of a deal, while others say the prototype of the payment system used on Samsung phones has been created.

Thanks to Apple's pay, the idea that customers will pay in stores by using mobile phones has also been rekindled in the United States, and that talks between Samsung and LoopPay are also coming from this. In September this year, Apple launched its payment system, which was able to place its phones near Pos for payment when using the latest iphone.

Similar to Apple Pay

Apple pay through the fingerprint identification technology to complete the purchase, the user simply press the finger on the Touch ID. Samsung's latest Galaxy handset also contains fingerprint-recognition technology, and sources say it is likely to be part of the new payment system. Currently, this technology can be used with PayPal's app, users can pay in this way in a store that supports PayPal. Samsung is interested in developing its own payment system, which makes it more competitive with Apple's business.

LoopPay also talks with Visa and other financial services companies to develop a more secure way to transmit payment data. It wants to use a system called "tagging", using unique placeholders to replace the customer's magnetic card information, and the merchant will never receive or store actual payment information. This is also the technology used by Apple Pay.

More traditional?

LoopPay's technology can be stored in debit or credit card magnetic stripe information, wireless transmission to the store checkout equipment, eliminating the trouble of card. The technology, known as magnetic safety transmission, has been implanted in certain hardware products, such as the digital payment card for LoopPay, which can be used independently or mounted in a special cell phone shell. The LoopPay user moves the device near the terminal to complete the purchase.

In addition, the company has said that, in addition to magnetic simulation technology, it can also transfer the payment data through NFC technology, and users do not have to open the app to pay. Support for NFC is critical to LoopPay, since retailers have started upgrading devices, supporting new plug-in cards, rather than traditional cards that need to be brushed, and upgraded devices that include NFC technology, businesses can still accept magnetic stripe cards, but the swipe will be phased out over time.

Since LoopPay's technology is similar to a swipe card, it uses more than Apple Pay or Google Wallet, and the latter two require stores to upgrade their devices to support NFC technology. At present, many businesses in the United States support the company's platform.

For LoopPay, if Samsung were to sign a patent-transfer agreement that would allow it to get support from mainstream companies, it would be a big help for a start-up.