According to a new report from Recode, Samsung paid $250 million USD to acquire Massachusetts-based LoopPay.
Samsung acquired the company earlier this year to enable its entry into the mobile payments space.
The acquisition promises to give Samsung a possible edge over competitors when it decides to enter the mobile payments space. The technology PayLoop developed allows almost any device to mimic a credit or debit card swipe without the use of NFC, or Near Field Communication. The advantage of this solution over competing ones like Apple Pay or Google Wallet is that retailers don’t need need to upgrade their checkouts to accommodate NFC, which the latter two depend on to function.
PayLoop’s technology is already embedded in Samsung’s latest two smartphones, the Galaxy S6 and Galaxy S6 Edge. The two devices also have NFC chips should Samsung decide to develop a mobile payments solution that leverages both technologies.
According to Recode, Samsung Pay will launch in the United States later this year. A Canadian launch for the service has not been announced.