(Reuters) - Samsung Electronics Co Ltd said it would buy mobile wallet provider LoopPay as it tries to gain a share in the mobile payments market, which its archrival Apple Inc recently entered with Apple Pay.
LoopPay’s technology can turn existing magnetic-stripe readers into secure, contactless receivers with no investments in new infrastructure required by merchants.
Apple Pay, launched in September, allows iPhone users to pay for anything at the tap of a button using near-field communication (NFC).
However, the success of Apple Pay hinges on the willingness of retailers to spend and upgrade their equipment to adopt NFC.
LoopPay’s technology, on the other hand, can work in about 90 percent of existing point-of-sale terminals, according to a statement from the companies on Wednesday.
Samsung was already an investor in LoopPay, along with Visa Inc and Synchrony Financial.
Terms of the deal were not disclosed.
Reporting by Abhirup Roy in Bengaluru; Editing by Don Sebastian