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Samsung Pay (formerly LoopPay) reports losses of $16.8 million in 2015

Posted: , by Mihai A.

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Samsung Pay (formerly LoopPay) reports losses of $16.8 million in 2015

Back in February last year, Samsung bought LoopPay, the startup behind a technology that brings smartphone payment compatibility to all magnetic card terminals, for $229 million. Earlier today, SamsungPay Corporation, which is the new name for the company following Samsung's acquisition, reported audited losses of $20.167 billion KRW, or $16.8 million for 2015.

Despite what seems like a negative financial performance, Samsung stresses that its SamsungPay affiliate brings a strategic advantage to its smartphone division. The company says that by incorporating SamsungPay's MST (Magnetic Secure Transmission) technology, which facilitates smartphone payments at most credit card terminals, Samsung's Galaxy smartphones have secured a path of continuous growth.

In the audited financial performance report, Samsung further builds on this notion. The company indicates that since there are more than 5 million Samsung Pay users in South Korea and the US, SamsungPay has facilitated the sale of 5 million Galaxy S6, S6 edge, S6 edge+, Note 5, A5, and Galaxy A7 units in these two countries. In terms of raw smartphone sales, Samsung's mobile payment unit is said to have contributed to revenue of more than $2.49 billion. 

Samsung does not make any profit from Samsung Pay itself, as the company does not impose commissions to either its users or sellers. However, aside from facilitating smartphone sales, the mobile payment division could also serve another, much more important role. By analyzing the data it gets from Samsung Pay, it is believed that Samsung could reap the benefits of a detailed customer behaviour model.

source: ET News

31 Comments
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posted on 07 Mar 2016, 08:20 11

1. Unordinary (Posts: 1285; Member since: 04 Nov 2015)


Lmfao ouch.

posted on 07 Mar 2016, 08:24 15

2. Deca-core (Posts: 75; Member since: 20 Nov 2015)


Please read the last paragraph.

posted on 07 Mar 2016, 08:45 19

7. another1 (Posts: 157; Member since: 25 Dec 2015)


You realize unordinary's point still stands , right?

For instance, Sony lost money per ps3 sold but reaped the benefits later.

Point is, they still reported losses, so "ouch" is still the reality of the current situation. Not too many companies report losses and say "wow, that feels good" based on what the future may or may not hold.

So, I suggest you read it again.

posted on 07 Mar 2016, 08:59 4

12. natypes (Posts: 1081; Member since: 02 Feb 2015)


Point? If you consider that a 'point' I feel sorry for you.

posted on 07 Mar 2016, 09:07 11

13. another1 (Posts: 157; Member since: 25 Dec 2015)


Actually, I feel sorry for you as you clearly don't understand the point of his comment.

A company posted losses, and he is suggesting that must hurt.

You get it? If not, we can chat about it over the phone until you do.

posted on 07 Mar 2016, 09:13 6

15. AllFanboysMatter (Posts: 57; Member since: 14 Feb 2016)


Don't pay attention to these butthurt Samsung fans. If you say samsung does anything wrong, their daily circle jerk is ruined.

posted on 07 Mar 2016, 12:44 8

33. willard12 (Posts: 1559; Member since: 04 Jul 2012)


Please explain it to us all. THEY DON'T CHARGE FOR IT. How can it be an "ouch" when it was never supposed to make money in the first place? I imagine they also lost money by buying and equipping devices with the SD 820 from Qualcomm. But, maybe, just maybe, they hope to recoup those losses for processers that they bought by using those processors to sell smartphones.
You get it?

posted on 07 Mar 2016, 09:23 5

20. refillable (Posts: 1045; Member since: 10 Mar 2014)


If you analize what "ouch" is, (go over athttp://dictionary.cambridge.org/dictionary/english/ouch ) you can be right because a loss can be described as a sudden pain... However "lmfao" definitely does not match with the context unless you are a true samsung hater. Think about it.

posted on 07 Mar 2016, 09:28 1

21. AllFanboysMatter (Posts: 57; Member since: 14 Feb 2016)


His point was in response to Deca-Core, who suggested Unordinary's point didn't make sense, but it does.

Perhaps Unordinary is a Samsung hater, but that isn't relevant to Anorther1's response. Think about it.

posted on 08 Mar 2016, 09:14

39. refillable (Posts: 1045; Member since: 10 Mar 2014)


You do not need to copy my sentence. If you analyze carefully, My comment's purpose wasn't solely to respond Anorther1's comment. It was rather a general statement. However, notice that Anorther1 was referring to 'his comment' entirely, not partly. Meaning that my response was still relevant to that response even though it wasn't necessarily a direct response. Go figure.

posted on 07 Mar 2016, 10:11 2

24. Unordinary (Posts: 1285; Member since: 04 Nov 2015)


I own a 3 TVs, a fridge, a wash machine, a new SSD, and a monitor I use for gaming, all from Samsung of which I very much like, especially the fridge!

So please, if saying a few negative things here and there of your beloved circle jerking God (the Galaxy S model), then you need to rethink your life.

p.s. I was ready to try the S7 until I saw its official design - Samesung. Boring. Cant complain that much about it, since I'm treating it like an "S" model equivalent from iPhone.

posted on 08 Mar 2016, 19:05

40. refillable (Posts: 1045; Member since: 10 Mar 2014)


Sorry but I don't care how you view Samsung. But I can't find any explanation of 'lmfao' that explains it being a statement that shows no hate at all. Unless, it's just a mere joke that contradicts with what you like of course.

posted on 07 Mar 2016, 11:01 3

29. kevin91202 (Posts: 526; Member since: 08 Jun 2014)


Actually, "ouch" would not be appropriate considering US$16.8M is really nothing compared to the US$229M that was spent in purchasing LoopPay. So they lost another 7%. BIG DEAL!

posted on 07 Mar 2016, 09:10 4

14. AllFanboysMatter (Posts: 57; Member since: 14 Feb 2016)


Okay, I just read the last paragraph, but then glanced back at the title... OUCH

posted on 07 Mar 2016, 11:40 2

30. engineer-1701d (Posts: 3271; Member since: 13 Mar 2014)


how can you have a loss i mean 2015 only had it for 5 months if not less did they expect to make the 200 million plus back that week of starting it up

posted on 07 Mar 2016, 08:31 2

3. natypes (Posts: 1081; Member since: 02 Feb 2015)


This is ok, it's still in it's infancy. They need to pick up the pace with adding banks though. It only works on 5 devices (6 now/soon). By the end of the year there will be a much bigger market presence of devices that work with SP. I don't think anyone with a brain expected it to make a profit in year 1. And I don't know how they did their financials, but if this includes the purchase of loop pay you can expect a HUGE turnaround in year 2 if there's no subtracting for the purchase in the budget.

posted on 07 Mar 2016, 08:36 6

4. kevin91202 (Posts: 526; Member since: 08 Jun 2014)


Giving away $50 and products such as a wireless charger for installing Samsung Pay doesn't help the bottom line. But it's a loss leader that has helped fuel Galaxy sales.

posted on 07 Mar 2016, 08:46

9. natypes (Posts: 1081; Member since: 02 Feb 2015)


Mine is on the way :D. I bet they come out of different budgets.

posted on 07 Mar 2016, 08:41

5. oister85 (Posts: 480; Member since: 27 Apr 2012)


Samsung acquired Loop Pay that means that no one else is going to used the MST technology right?

posted on 07 Mar 2016, 08:49

10. tyrionTheWise (unregistered)


Except magnetic cards, yes. Looppay has the patents.

posted on 07 Mar 2016, 08:46

8. natypes (Posts: 1081; Member since: 02 Feb 2015)


Also, consider it went live in, what, September?

posted on 07 Mar 2016, 09:14 4

16. AllFanboysMatter (Posts: 57; Member since: 14 Feb 2016)


Notice, no one here isn't aware it's still relatively new. But, there were still losses and that sucks man.

posted on 07 Mar 2016, 09:18

18. natypes (Posts: 1081; Member since: 02 Feb 2015)


I'm not that worried about 2015's performance. Like I said if they count the acquisition as part of their spending, they did really well. I don't know if they did or not. Regardless of that, it still is very new and has outstanding potential. Samsung HAS to get banks involved at a more rapid pace or this will be a failure. I hope it succeeds, but not b/c I'm a 'fanboy', b/c I think it's neat tech and is THE answer to mobile payments because of it's versatility.

posted on 07 Mar 2016, 10:39 6

26. MKeditor (Posts: 32; Member since: 10 Dec 2010)


Samsung Pay is genius. It's the smartest new feature I've seen on a phone in a long time. Eventually all phones will follow Samsung's lead. As for a loss? I see it as an investment. If we're only looking short term, Disney has lost 2 billion on buying Lucasfilm because The Force Awakens has only made 2 billion but they paid 4 billion. Mistake or opportunity? You decide.

posted on 07 Mar 2016, 10:47

28. AlikMalix (Posts: 5237; Member since: 16 Jul 2014)


"By analyzing the data it gets from Samsung Pay, it is believed that Samsung could reap the benefits of a detailed customer behaviour model.".

Google, is that you?

Do I understand this correctly? I don't want anyone "analyzing" anything I buy, eat, or where I go. Huge negative there, Samsung.

posted on 07 Mar 2016, 12:03

32. j2001m (Posts: 2840; Member since: 28 Apr 2014)


Hi
They edited, this from other sites that say Apple and Google and all the pay companies including visa and so on, do this, they have no idea if Samsung are doing it

posted on 07 Mar 2016, 19:27

38. AlikMalix (Posts: 5237; Member since: 16 Jul 2014)


Link? Because the way I understood for Apple Pay - there's no way for to see what you're purchasing. I assumed it was the same for Samsung pay as well...

Thank about it - what would be the gain for apple and Samsung to collect your data... Apple makes a tiny decimal from every transaction and they don't do iAds anymore... Apparently Samsun has a motive now since his is making them absolutely no money... I was just surprised - I though data mining was Googles bread and butter.

posted on 07 Mar 2016, 11:49 7

31. sissy246 (Posts: 704; Member since: 04 Mar 2015)


Well if Samsung was money hungry like apple and charged .15 cents for every $100 Samsung would have made money but they don't try to soak people like apple.

posted on 07 Mar 2016, 13:44

34. ctdog4748 (Posts: 112; Member since: 05 Mar 2016)


Absolutely, Samsung isn't in business to make a profit, they are totally altruistic. Hence, they'll do nothing at all with the information they garner from Samsung Pay users. Oh, and in case you where wondering, this is a sarcastic reply to your asinine comment.

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