Samsung Reportedly Divvying Up its Own Version of Apple Pay

By Kate Knibbs on at

There was no way Samsung was just going to let Apple waltz along with its own mobile payment system without launching a competitor, and it looks like the Korean powerhouse is gearing up to launch a rival in 2015. Samsung is reportedly trying to make a deal with a mobile payment startup called LoopPay, according to Recode. What could go right!

The talks could still fall through, but multiple sources confirmed that Samsung wants to partner with payment app LoopPay to create is own native mobile payment system. Many Samsung phones can already use payment options like Google Wallet, but a deal with LoopPay would enable Samsung to build its own version of the tech.

Right now, LoopPay makes people attach a separate piece of hardware, like a fob, to their smartphone to complete mobile payments. The advantage of the tech is that it mimics credit card swipes, so it's compatible with more check-outs than Apple Pay. The downside is dangling a fob off your phone.

But the LoopPay CEO told Recode earlier this month that the company is working on embedding its tech in smartphones. A deal with Samsung could put LoopPay's system into NFC, eliminating the need for an extra piece of hardware.

Getting rid of a crappy fob is a good call, but that doesn't mean Samsung's plan will work. Sources told Recode that it's likely the payment system will use Samsung's fingerprint identification technology. That would put it in line with Apple Pay's use of fingerprint sensors... except the iPhone's fingerprint tech actually works. At least on the Galaxy S5, the fingerprint sensor is too finicky to rely on. Which doesn't even approach the biggest question: Do we really need yet another mobile payments system on Android? [Recode]