If you’ve been following along at home, this news should come as no surprise: with the ink barely dry on the company’s acquisition of LoopPay, Samsung yesterday unveiled their Apple Pay competitor along with two new models of their flagship Galaxy line.
Calling their mobile payments platform Samsung Pay (because, duh), the company revealed it has already partnered with Visa and MasterCard, and says it is looking to create similar agreements with AmEx, Chase, Bank of America, etc — just as Apple has done with their service.
Samsung Pay has a unique advantage over competitive offerings from Apple & Google, in that LoopPay enables Galaxy owners to make purchases through a technology called MST (Magnetic Secure Transmission). MST allows mobile payments (in rather slick fashion) by mimicking a credit card “swipe” through merchants’ existing magnetic card readers. This means that millions of businesses that haven’t yet upgraded their POS systems to include NFC will immediately be able to accept Samsung Pay from day 1. In addition, Samsung Pay will support NFC payments for those merchants that do have the newer tech.
Samsung has been working with LoopPay long before today’s premiere of the newest Galaxy phones; though, Samsung Pay itself won’t be available until this Summer, as the company undoubtedly wants to ensure that all the kinks are worked out before flipping the switch. Still, assuming Samsung can get some of the big banks on board (which seems likely), Samsung Pay may just be in a position to make serious waves in the battle to get people leave their wallets at home.