We're finally learning just how much it took Samsung to purchase LoopPay, which was acquired by the Korean manufacturer earlier this year. Turns out that a whopping $250 million was spent to acquire the company and its technology, but the real question is, how will LoopPay hold up against Google Wallet and Apple Pay? For those unaware, LoopPay is a service and application that will allow consumers to pay for their goods and services straight from their smartphone. This isn't anything new; we've already seen this played out before with Google Wallet and now Apple Pay. From where we stand right now, it seems that Samsung actually holds the upper hand. Find out what makes LoopPay different from similar application services offered such as Google Wallet along with what it means for consumers and brick and mortar shops.
LoopPay was first created in Massachusetts as a start up company. The company was able to create a technology that would allow consumers to pay their checkout bill simply by placing their smartphone near the hardware we normally use to swipe our credit card. Samsung got word of the technology and reportedly bought the LoopPay company for around $250 million where it can potentially rise depending on earnouts. Now as mentioned, I'm sure you're already aware of the technology very similar to LoopPay through Google and Apple. Ideally, the process of paying for goods and services through your smartphone isn't new but the technology created for LoopPay is unique.
For instance, Google Wallet and Apple Pay rely on NFC technology. This meant that stores and franchises had to equip new hardware for their checkout registers just to use the latest application services. However, LoopPay created a technology that would allow already current hardware systems to authorize payments without making any changes. Consumers would only have to attach a case on their smartphone that has the technology equipped within it.
With Samsung now owning the company, the technology would be placed within future Samsung handset devices. Additionally, Samsung has stated that not only will consumers be able to use the LoopPay service on older hardware within your favorite stores but will also be optimized to work with NFC-equipped checkouts. It's clear that services like LoopPay, Google Wallet, and Apple Pay are further attempting to make consumer smartphones even more convenient, and thanks to LoopPay, big name store franchises to smaller independently owned shops won't have to worry about making any further adjustments to their checkout stations.