Google sees room for two mobile payment systems on Samsung phones

Google sees room for two mobile payment systems on Samsung phones
Samsung and Google have agreed to disagree before. There was that period about two years ago when Samsung wanted to show Google who really was responsible for Android's success and developed the Tizen OS. Now, following the word that Samsung has acquired mobile payment company LoopPay, the two tech titans would appear to be at odds once again.

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.

source: WSJ

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9 Comments

1. GeorgeDao123

Posts: 432; Member since: Aug 20, 2013

Samsung is right to acquire LoopPay. That will help it continue the war with its big rival, Apple. And Google can also get benefit from this acquisition. I guess at Google I/O '15, Mr. Pichai will announce that Wallet will support magnetic stripe swiping.

2. RoboticEngi

Posts: 1251; Member since: Dec 03, 2014

Well if Google actually had a plan with wallet in the rest of the world maybe samsung wouldnt need to do this.

3. ph00ny

Posts: 2079; Member since: May 26, 2011

Since Google Wallet is completely shutdown by the mobile carriers here in the states exception of sprint, it makes perfect sense to get around the limitation

6. MasterSyrron

Posts: 59; Member since: Dec 08, 2012

I have Samsung Galaxy Note 4 on Verizon and use Google Wallet all the time. Not sure where you get the "exception of Sprint" from...

7. ph00ny

Posts: 2079; Member since: May 26, 2011

Mobile touch based payment works on stock rom? It looks like some folks are reporting that it works now. Three major carriers were pushing ISIS payment system (now called soft something) http://forums.androidcentral.com/samsung-galaxy-note-4/445651-note-4-google-wallet-blocked-verizon-t.html

4. Neros

Posts: 1016; Member since: Dec 19, 2014

Google blew it. Good tha w have sammy.

5. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

I still don't see a win for a consumer like me to use smartphone payment service. Instead of only the bank know about my finance, now Apple/Google would get to know my finance plus my biometric data. While I get jack squat from them. At least credit card issued by bank earn me points that I could use to exchange shopping voucher and with Visa payWave its very straight forward as well. http://usa.visa.com/personal/security/card-technology/visa-paywave.jsp

8. AlikMalix unregistered

Oh oh, I dont think Google is happy with Samsung doing their own thanG...

9. seedorf

Posts: 44; Member since: Feb 16, 2015

Is the best step fr sammy,apple acquired beats by dre,now sammy is in for loop pay...so lets see wats next fr sammy on tizen

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