Samsung has entered the mobile payments fray with its acquisition of LoopPay, giving it the technology to turn its smartphones into wireless credit cards that can purchase goods and service with a wave of the wrist. LoopPay is clearly Samsung’s answer to Apple Pay, but there’s still one missing piece from its payments puzzle.
With LoopPay’s technology the consumer electronics giant now has all of the technical tools to take on Apple Pay, but Samsung still needs to form direct partnerships with the card-issuing banks. If it doesn’t, then the upcoming transition to new chipped smart cards will be awfully rough on its contactless payments technology.
Today LoopPay’s technology relies on what is essentially a spoofing of the credit card. It records the credit card number off of your plastic’s magnetic stripe, and when its fob or smartphone sleeve is waved over a payment terminal, it transmits that number through…
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