Back in December, we had heard reports that Samsung was planning to launch its own mobile payment system in 2015 that would pose a direct competition to Apple Pay. Apple had introduced its own payment system Apple Pay during the launch of its two new smartphones iPhone 6 and iPhone 6 Plus and the company claims that approximately two-thirds of its mobile transactions are being carried out via Apple Pay.

Now Samsung plans to launch its own payment system with the introduction of its new flagship Galaxy S6 and the Galaxy S6 Edge with curved screen. These will reportedly be Samsung’s first two phones to implement this payment system. The company was already in talks with a LoopPay, a Burlington, MA, startup. A report by South Korean publication DDaily confirms this.

The LoopPay mobile payment system does not use NFC but instead uses a “magnetic secure transmission” technology that mimics a credit or a debit card swipe. The LoopPay payment system is accepted at over 10 million retail locations worldwide, a figure much higher than that of Apple Pay.

Samsung also plans to have a fingerprint scanner embedded inside the home button to provide additional security. Maybe this is the reason that Samsung is switching from swipe scanner present in its current phones to a touch-based scanner in its Galaxy S6. Companies like Apple, Meizu and Huawei already have touch-based sensors in their devices.

Earlier reports have said that Samsung was preparing to introduce an “innovative premium handset” with some “special function”. Maybe this mobile payment system is that special function. We will know it for certain on March 1 when Samsung will be unveiling its new flagship.

Meanwhile, have a look at the LoopPay video showing how it works:

 

Via PhoneArena

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