Samsung Electronics will acquire LoopPay, a mobile wallet solutions provider and payment service headquartered in Massachusetts, the U.S.
LoopPay holds patented technology related to magnetic secure transmission (MST). MST allows you to pay instantly by simply placing the device, which contains your credit card information, against a reader where you would normally swipe a credit card.
Since the technology can be used with existing payment readers, consumers can pay conveniently with their phones in most stores around the world.
Also, Samsung Electronics is expected to secure the leading position in the mobile commerce industry based on partnerships with relevant industries, which LoopPay has been building, including banks and credit card companies.
Samsung Electronics has been paying attention to the potential of LoopPay through the global innovation center. The company also invested in LoopPay in August 2014 alongside credit card company Visa and consumer financing firm Synchrony.
With the takeover, top executives and employees of LoopPay, including two co-founders Will Graylin and George Wallner, will join Samsung Electronics.