Another shot in the mobile wallet wars: Samsung Electronics Co. will be buying LoopPay, which turns existing magnetic stripe readers into secure, contactless receivers. Terms of the deal were not disclosed.
LoopPay’s proprietary technology works with about 90 percent of existing point-of-sale terminals, with no investment in new infrastructure required by merchants, and it was developed in the Miami Beach home lab of co-founder George Wallner. Its products include an an affordable protective sleeve that fits around your smartphone, turning it into a mobile wallet. Wallner, a veteran in the mobile payment industry, is credited with developing the first credit card swipe machine as founder and CEO of Hypercom, taking that company from zero to IPO.
As part of the acquisition, LoopPay founders Will Graylin and Wallner will work closely with Samsung’s Mobile Division. The companies believe LoopPay’s talent and technology, paired with Samsung’s world leading mobile technology, global presence and distribution capabilities, will help drive the next wave of innovation in the digital smart wallet.
“This acquisition accelerates our vision to drive and lead innovation in the world of mobile commerce. 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 and Head of IT and Mobile Division at Samsung Electronics, in a news release.
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Samsung had already been working with LoopPay, which is headquarter in Boston, as Samsung was a strategic investor along with Visa and Synchrony Financial. The investment, which was facilitated by Samsung’s Global Innovation Center, helped fuel LoopPay’s technology development.