Samsung working on its own Apple Pay competitor

Samsung Galaxy Note 4/Note Edge

According to multiple sources from Re/code, Samsung is in talks with a mobile payments startup to launch its own Apple Pay competitor in 2015. Samsung is reportedly talking to LoopPay about this, but it is unclear if both parties have entered into an agreement as of now or not. 

One of the sources suggest that the deal could still “fall apart,” while another source tips that a prototype using a Samsung phone has been created to demonstrate the contactless payment system.

LoopPay’s technology can wirelessly transmit the data stored in a magnetic strip in a debit or credit card to the payment terminal. The company also sells a fob and a LoopPay digital payment card that incorporates this technology, dubbed magnetic secure transmission. Users simply need to bring their LoopPay hardware equipped fob or card near the credit card terminal to wirelessly transmit the required data. The company can also transmit the relevant data over NFC, which is slowly but steadily becoming a commonplace in the Point of sale terminals used by major retailers.

The technology used by LoopPay is fundamentally different from how Apple Pay works, which relies on NFC. At the moment, it is unclear if LoopPay’s implementation is safer and easier to use compared to Apple Pay, though it is highly unlikely.

Re/code’s Walt Mossberg had taken LoopPay for a spin earlier this year, and found that it worked in 10 out of the 13 stores he visited. LoopPay’s CEO had earlier also revealed to Re/code that the company’s technology would be making its way to a smartphone that has “massive penetration.”

Apple has single-handedly disrupted the contactless mobile payment market within a couple of months of the release of Apple Pay. The company now already supports credit cards from major banks in the United States that process nearly 90% of the credit card transactions.