Samsung is reportedly looking to launch its own wireless mobile payment system to compete with Apple Pay.
Multiple sources claim the Korean tech giant plans on accomplishing this through a deal with Burlington, Massachusetts-based startup LoopPay, which works on technology that wirelessly transmits information stored on a debit or credit card's magnetic stripe to a store's checkout equipment, according to Re/code. While one source says the deal could fall through, it hasn't been made official as to whether or not an agreement will be reached.
The system would allow consumers to avoid paying for products with credit cards or cash, and instead wave their phones at brick-and-mortar stores to make payments.
The report follows three months after Apple introduced its mobile payment system to the world, letting owners of the iPhone 6 and 6 Plus buy items in stores by waving their phones close to checkout equipment.
While Google Wallet and other payment options are already available on many Samsung phones, working with LoopPay would give the company its own payment option, Gizmodo reported.
LoopPay users currently have to attach a fob or other separate pieces of hardware to their smartphones in order to buy products. The technology's ability to mimic credit card swipes allows users to go to more check-outs than they could with Apple Pay.
LoopPay CEO Will Graylin said earlier this month that his company plans on embedding its technology into a mainstream smartphone in 2015, Re/code reported. Graylin didn't provide the name of the phone maker he would work with, but he did say the partnership would incorporate the use of NFC technology to send payment information to the merchant.
The NFC integration would make LoopPay's fob unnecessary for buying items, Gizmodo reported.
Samsung's mobile payment service is expected to debut sometime in 2015. Samsung and LoopPay declined to comment on the deal.
