Rumour has it that Samsung is preparing to deploy its own wireless mobile payment system. Apple’s Apple Pay system is rapidly gaining momentum as an alternative payment method, and it is unsurprising that Samsung will want a piece of the pie.
The most likely source for Samsung’s approach to the system could come from LoopPay, a US based company that already has a mobile payment system of its own. However, reports about the deal between the two companies are conflicting with some saying that the deal has fallen through, while other indicate that a prototype has already been created.
LoopPay’s system would give Samsung an advantage over both Google Wallet and Apple Pay by allowing it to work in outlets that have not upgraded systems to be NFC compatible. It instead uses a proprietary Magnetic Secure Transmission that allows it to interact with regular credit card readers by tapping on the machine. This would essentially allow it to work everywhere that credit cards are accepted, and not just those that are compatible with current popular wireless mobile payment systems.
Of course, this assumes that the credit card readers still retain the magnetic strip swiping system that has been phased out by almost every country outside the US. Most modern credit cards use an embedded chip that is harder to clone and is more secure; however, it appears that the US is trying to skip this particular innovation and move on directly to wireless payments.
While most NFC enable Android smartphones can already use the system with Google Wallet, it appears that Samsung is adamant on building its own version. Whether Android users need two wireless payment methods on their next Galaxy device is still questionable.