Samsung planning to launch an Apple-Pay like payment platform

Samsung, which recently realised the fact that it may soon loose its smartphone domination, is now planning to get into payment services. As per <Re/Code> the company is planning to launch an Apple-Pay like platform to revert its dwindling fortunes in the smartphone market.

The report says that Samsung has been in talks with Burlington, Mass.-based LoopPay in order to launch its own mobile payments platform by 2015. The new platform could launch alongside Samsung’s next generations Galaxy S6, which is rumoured to launch in CES next year.

However sources have had differing opinion regarding the Samsung-LoopPay deal. One of the sources pointed out that a prototype of the model is ready while the other pointed out that the deal is far from being cemented.

This new technology will reportedly replace credit or cash payments and will use a waving gesture, pretty much similar to what Apple Pay uses. However, users with only certain specific Samsung models will be able to use the feature.

As for LoopPay, the deal has huge strategic benefits. The start-up, despite of having credible technology at its disposal, hasn’t really been able to penetrate depper into the mainstream market. A successful deal with Samsung will help LoopPay to get into mainstream payment services, and will also attract other brands to approach the brand.

Also, LoopPay’s technology doesn;t require equipment up-gradation, unlike Apple Pay and Google Wallet. Its technology involves transmission of a user’s debit/credit card information, without the user requiring to swipe the card.The technology behind this transmission is what company calls, a “magnetic secure transmission”.

We have contacted both LoopPay and Samsung for comments and will update this story as soon as we receive a response.