Late on BoardClearly, Samsung is late on the mobile payments scene, with Apple Pay having been in operation since September 2014, but the new service has a key advantage in that it’s compatible with magnetic-stripe card readers, which make the bulk of POS (point-of-sale) terminals. This is unlike Apple Pay and Google Wallet, which leverage NFC (near-field communications). More so, LoopPay supports both NFC and magnetic-stripe cards without requiring additional infrastructure. This essentially makes the service more flexible and perhaps even reliable than its competition.The enhanced capabilities and additional convenience that LoopPay leverages is just what Apple needs to say this service gain widespread acceptance amongst merchants. This is critical to winning the mobile-payment market.
Great Strategy MoveCertainly, this acquisition is a smart strategy move on the side of Samsung Electronics. In the last few years, Sammy has been struggling to keep its market influence especially with the onset of cheaper smartphones manufacturers and more aggressive industry players. By extending its service sector, while continuing to invest in other areas, Samsung can easily become a billion-dollar entity.This isn’t a cover-all situation though. Samsung will only be able to leverage the US market with LoopPay. Considered that Europe isn’t exactly a big fan of magnetic stripe technology, and that the mobile payment market growth in emerging regions is still slow, there’s only so much advantage that this can have.
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February 6th, 2017
Updated on August 16th, 2017