The Samsung system would counter Apple Pay, and would work by waving certain Samsung phones near point of sale terminals, the tech site reported. Samsung did not comment to ReCode and LoopPay would not confirm that it was working with Samsung. Samsung did not respond to a request for comment from PaymentsSource, and a LoopPay spokesperson said the company would not respond to "speculation about the future."
Samsung's latest Galaxy phone, the S5, includes fingerprint identification, which could be used for an authentication system that resembles Apple's TouchID. Samsung also launched a Samsung Wallet app, which is similar to Apple's Passbook, with last year's Galaxy S4 smartphone. Samsung's merchant services include an exchange for tools and apps that run in Samsung devices.
LoopPay executes contactless payments by using a fob or case to transmit a magnetic signal to the card reader of a standard point of sale terminal. The company was founded by CEO its CEO, Will Graylin, who previously helped lead mobile point of sale provider Roam Data, now a unit of Ingenico; and Way Systems, now a part of Verifone. LoopPay's other co-founder, George Wallner, previously helped lead Hypercom.