Today, LoopPay announced that they were acquired by Samsung. This wasn’t entirely unforeseen, considering rumors have been popping up regarding LoopPay’s future integration with Samsung phones. The LoopPay system is a new technology that is tied to the current magnetic stripe credit card system. Using a small loop of wires in a special hardware device, the LoopPay devices essentially mimic the magnetic field caused by a swipe of a credit card, enabling mobile payments at nearly every existing credit card swipe terminal.
The device works like magic– simply place the Fob or Card next to the magnetic swipe slot on an existing credit card machine, press a button on your LoopPay, and the reader will act as if a physical card was swiped. I’ve owned one of these devices for a little over a month (specifically, the LoopPay Card) and it has worked flawlessly every time I’ve used it on a traditional terminal, but there’s one big problem that needs to be solved before LoopPay can become a major player in the mobile payments space.