Samsung now has approval for a new device that can be used to conduct mobile POS transactions called LoopPay Valet. Samsung Pay is the mobile wallet that has been available on Samsung phones since 2015, and uses Magnetic Strip Technology (MTS). MTS is much more widely accepted at merchant terminals than is near-field communication technology (NFC) that Apple Pay, Android Pay and others rely upon. LoopPay, which is owned by Samsung recently acquired approval from the FCC for a new mobile payment device that is external to a phone but communicates with a mobile phone through Bluetooth low energy (BLE): Here’s a description from Let’s Go Digital:
Today, a tokenized payment device for Samsung Pay shows up at FCC. The product is called LoopPay Valet or LoopPay TPD (token payment device) and has model number SP-TPD02. The compact transceiver (5.9×3.7x4mm) supports MST and NFC technologies. It is small enough to hang on a bunch of keys. The device is controlled by a companion app over a Bluetooth Low Energy connection.
The Samsung LoopPay TPD is descripted as follows: The CSM (CardSafe-mini) is a low cost contactless payment IoT device. It functions as a tokenized alternative to traditional magnetic stripe and smart VISA cards. The CSm operates pairing with a companion wallet apps application that runs on a smartphone. The app is used to manage the CSm device via a Bluetooth BLE wireless link.
Would consumers adopt something like this before they would adopt phone based mobile solutions? They might believe that this new Samsung and LoopPay product is more secure and maybe more convenient, but the competition is less about other mobile payment types and more from legacy cards and cash options.
Overview by Sarah Grotta, Director, Debit and Alternative Products Advisory Service at Mercator Advisory Group
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