Samsung acquires Apple Pay rival LoopPay

Samsung is readying itself to go up against Apple by purchasing US mobile payments startup LoopPay, a direct rival to the company's Apple Pay platform.

The acquisition was rumoured at the beginning of the month, with reports that Samsung was planning to launch some kind of mobile payments system with its Samsung Galaxy S6 device.

"Our vision of inspiring consumers to transition from a physical wallet to a truly digital wallet will continue," LoopPay chief executive Will Graylin said in a blog post. "I'm most excited that Samsung shares this vision and has chosen to help change how we shop and pay for goods and services."

LoopPay allows shoppers to upload credit card details onto a secure app, using the app to subsequently pay for items. The company's technology also lets retailers adopt existing systems to support contactless payments. This gives it an edge over competitors, as LoopPay has the potential to work in 90 per cent of existing point-of-sale terminals.

David Eun, EVP of Samsung's Global Innovation Centre, added: "We are excited to take our relationship with LoopPay to the next level, by bringing consumers a mobile wallet solution that is not just safe and reliable, but also widely accepted at more locations than any competing service.

"Through this deal we can significantly accelerate our mobile commerce efforts. LoopPay's outstanding leaders and team have deep-rooted relationships with banks, card networks and merchants that will complement those Samsung has established over the years."

Samsung's next smartphone release, the Samsung Galaxy S6, is expected to be unveiled on 1 March, prior to the Mobile World Congress.