Google sees room for two mobile payment systems on Samsung phones
Following the word that Samsung had officially purchased LoopPay, many wondered about Samsung's commitment to Google Wallet. David Eun, head of Samsung’s Global Innovation Center, admitted that Google is an important strategic partner for Samsung, but also said that the focus is on Sammy's customers. He said that the manufacturer is "committed to creating the different experiences and devices that they (the customers) want."
LoopPay and Google Wallet use two different methods to allow users to make payments by tapping the phone to a POS terminal. Google Wallet uses NFC connectivity which limits its use to retail locations outfitted with NFC. LoopPay's system is based on the magnetic stripe on the back of a credit card and doesn't require NFC. Because most retailers already use a magnetic stripe swiping terminal, Samsung's new mobile payment system is already accepted in over 10 million locations, swamping the smaller (but growing) number that can accept Google Wallet, Apple Pay and other NFC based systems.
Samsung executives have already said that the LoopPay system will be available for the Samsung Galaxy S6 which will be unveiled March 1st at MWC in Barcelona. That means that the new flagship might offer two different mobile payment platforms for users to employ. Tim Sloane, a payments analyst at Mercator Advisory Group, says that this could be confusing for some users.
Surprisingly, Google executives are said to be okay with all of the duplication. One person familiar with the company's thinking says that Google believes that multiple mobile payment apps can live side-by-side on a single phone.