Samsung Goes Loopy On Payments

In buying LoopPay, Samsung is hoping to counter Apple’s jump into mobile payments. Instead, Samsung may have just acquired a white elephant, mobile payment technology that could become obsolete almost immediately.

LoopPay looked attractive to Samsung because its technology doesn’t require merchants to have the same specialized chip readers needed to accept Apple Pay or Google Wallet. Instead, LoopPay works with any standard “swipe”-style credit card terminal. Its secret: a loop of copper that, when energized, can emit a pulse that fools the magnetic stripe reader in most credit card terminals into thinking it’s a credit card.

Right now the loop is an accessory that comes in either a key fob or a phone case, but LoopPay and Samsung have said they intend to build it into a handset eventually. It’s unclear how the technology will relate to Samsung’s existing digital wallet.

No subscription? You’re missing out.
Join the high-powered community of tech and business leaders who rely on The Information’s original news and in-depth reporting.
Subscribe to read the remaining 490 words of this article.
What’s included in a subscription?
Read The Information’s original, in-depth reporting and analysis
Receive as-they-happen articles via email
Talk with award-winning reporters in subscriber-only conference calls
Join the conversation on our subscriber-only Slack channel
Attend intimate, high-powered events with leaders in tech and business
Subscribe to The Information

The good news is that Samsung likely didn’t pay much for LoopPay, a Massachusetts company that raised $13 million from investors. Even so, this is one deal that may be forgotten faster than it takes to swipe a card through a terminal.

Login or Subscribe to follow the discussions happening here and real-time in our   Slack Community.
Read comments from top tech and industry leaders
Joe Lonsdale
Joe Lonsdale
Founding Partner, Eight
Chamath Palihapitiya
Chamath Palihapitiya
Founder & Managing Partner, SocialCapital
Tina Sharkey
Tina Sharkey
CEO, Brandless
Jonah Peretti
Jonah Peretti
CEO, Buzzfeed
Adam D'Angelo
Adam D'Angelo
CEO, Quora
Brit Morin
Brit Morin
Founder & CEO, Brit + CO
Dustin Moskovitz
Dustin Moskovitz
Co-Founder, Asana
Christina Miller
Christina Miller
President & General Manager, Turner
Max Levchin
Max Levchin
CEO, Affirm
Adam Mosseri
Adam Mosseri
Director of Product, Facebook
Alex Mather
Alex Mather
The Athletic
Martha Josephson
Martha Josephson
Partner, Egon Zehnder
James Murdoch
James Murdoch
Co-Chief Operating Officer, 21st Century Fox
Andrew Kortina
Andrew Kortina
Founder, Venmo
Ben Chestnut
Ben Chestnut
Co-Founder & CEO, Mailchimp
Ruchi Sanghvi
Ruchi Sanghvi
VP Operations, Dropbox
LoopPay’s technology would likely hit markets this fall, right around the time merchants are upgrading to EMV terminals that will make LoopPay obsolete.