With LoopPay, Samsung could take early lead in mobile payments
One of the hurdles to implementation for mobile payment technology is the cost of adopting new physical systems compatible with methods like Apple Pay. Samsung stands to take what observers call an "early lead" on the marketplace due to its acquisition of LoopPay.
"LoopPay developed a technology called Magnetic Secure Transmission (MST) which will be integrated into new Samsung phones," reports John Heggesteun of Business Insider. "The technology will allow mobile users to pass their phones over a typical credit card reader to make a payment. In addition, Samsung Pay users will also be able to pay by presenting a barcode to be scanned at checkout."
This means that a higher number of merchants should be able to accept Samsung Pay payments sooner than its competitors, as the company has presented users with a handful of options to complete transactions. Other products on the market depend on the presence of near field communication (NFC) scanners, which merchants may be slower to adopt. Heggesteun says that those devices are being adopted "rapidly," but are still "far from ubiquitous."
Business Insider estimates that a $37 billion volume of mobile payments will flood the marketplace this year, with additional growth through 2019 reaching upwards of $808 billion. As such, retailers would be remiss to overlook the potential for revenue these platforms present. As Samsung fine-tunes its versatile payment model, it helps to educate employees about how to accept Samsung payments using a typical credit card reader.
At Vantage, we have a depth of experience guiding merchants through the changes and challenges of payment processing. Contact us today for a consultation regarding your merchant services and other payment processing needs.