Samsung and Apple have faced a series of economical, social and technological changes together. Working in parallel and obviously as rivals, they have created a base for and high standards for everything that is about to enter this particular field of gadgets and devices. Because Apple has taken it to the next level with its system of mobile instant paying, ApplePay, Samsung has gathered its forces and acquired LoopPay, a U.S. mobile payments firm that is planned to counter the version that Apple owns.
LoopPay designs small devices that can be added to smartphones in order to become even smarter and make them a tool in paying any bill in stores, cafeterias, etc. In conjunction with a mobile app, the device that is attached to the phone is able to pass on the credit card information and facilitate the payment. The procedure is easy and somehow pleasant: the device created by LoopPay is held at a small difference from a traditional magnetic strip reader. Some centimeters are enough for the wireless mechanism to receive the payment.
The technology is called LoopPay’s Magnetic Secure Transmission (MST) and the structure allows the magnetic field to be stimulated by a magnetic strip, turning the card readers into contact-less payment devices without modifications. On the contrary, ApplePay uses another technology regarding this particular feature, called NFC (near field communication). The NFC requires retailers to have contact-less payment terminals that can accept NFC signals. However, LoopPay is confident that its variant will have more success, taking into consideration that the majority of merchants use this system: 90 percent of them. The number of payment terminals in the U.S. that work with NFC is considerably smaller than the ones that accept MST. Up to several million, a great amount of people will be perfect candidates for LoopPay.
JK Shin, head of Samsung’s mobile division said that:
“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.”
Unfortunately, there’s a catch: LoopPay can’t relate to some older readers: restaurants and bars had problems in the past when processing LoopPay transactions because of various hardware and software issues. Parking meters and other machines that work only if a card is inserted, like a bank ATM also have a problem with LoopPay. Another issue would be the fact that LoopPay offers only the basic magnetic signals, whereas the ApplePay has a newer equipment that is also enabled for EMV, that offers stronger security.
Image Source: The Rakyat Post