Samsung has recently acquired LoopPay, a US mobile payments firm. The acquisition is seen as a counter to the Apple mobile payment system, Apple Pay.
LoopPay uses Magnetic Secure Transmission (MST) technology which helps transferring credit card information in conjunction with a mobile app. The card information can be sent wirelessly when the device is held within a few centimeters of a traditional magnetic strip reader.
This is different than NFC (near field communication) used in Apple Pay. NFC requires retailers to have contactless payment terminals to accept NFC signals.
LoopPay says that Samsung could get advantage over Apple Pay, as its MST based approach could be instantly used at about 90 percent of the retail terminals in US.
With LoopPay the retailers do not have to change their existing checkout devices, rather it will be the users who will have to add a small device either to their phone or phone case. Along with the credit card the other ids can also be incorporated with the LoopPay’s device. This will ease out the customers carrying several other ids while travelling.
Image source: arstechnica