Mobile Payments Race Is On

Reportsthat SAMSUNG ELECT LTD(F) SSNLF bought mobile payments startup LoopPay have investors wondering who will win the mobile payments race. The deal throws another contender into the mix where Apple Inc. APPL is already vying with Google Inc GOOGGOOGL to push its own system.

Apple Pay A Tough Sell

For months, Apple has been touting the benefits of its mobile pay system, compatible with the iPhone 6 and the soon-to-be-released smart watch, with only one drawback – merchant participation. Apple’s system requires participating retailers to purchase special payment pads as well as pay a service fee similar to that of credit card transactions. While many merchants have signed on to offer the service, some have been hesitant about the investment costs. Despite that, Apple has remained confident that widespread adoption of Apple Pay is inevitable as popularity grows among consumers.

Related Link: Apple's Smartphone Share Poised To Overtake Samsung

Move Over Apple

However, Samsung looks likely to give consumers and merchants another very attractive option— LoopPay. The mobile payment startup’s system works using existing credit card readers that most stores already have available. That is good news for everyone involved, except Apple of course, since it means that any retailer that accepts credit cards will be able to offer the servuce. Samsung is expected to launch a new smartphone as early as next month that incorporates LoopPay technology, providing Apple with some stiff competition.