Samsung is searching for an answer to Apple Pay

Samsung is edging closer to debuting its own take on wireless payments, according to a report from Recode. Following the launch of Apple Pay earlier this year, Samsung has reportedly been trying to license technology from startup LoopPay to create a competing service. Although the site’s anonymous sources agree that LoopPay and Samsung have been in talks, one says the deal “could still fall apart,” even though another says a prototype payments system has already been created.

Having a payment system on your phone is not the answer to Apple Pay. What Apple did right was bring the bing banks and stores on board. That matters.  The moment Apple Pay was launched, I had an email from my Bank talking about Apple Pay.  

I work in New York and when I walk across a bank on the street, I see Banks (not Apple) advertising Apple Pay. People know what Apple Pay is. Yes Google wallet came to this party a long time back - but only a certain % of people know what Google Wallet is and how Google Wallet works. 

Perhaps more interestingly, LoopPay is best-known for “Magnetic Secure Transmission” technology that mimics a card swipe, allowing users to pay with their phone even at terminals that don’t support NFC.

This made me laugh.