Apple Inc. (NASDAQ:AAPL) may have another front it needs to confront Samsung Electronics Co. Ltd. on if a report from Re/code’s Jason Del Rey proves to be correct.
According to Del Rey, Samsung is working on a payment system that is inspired and meant to compete with Apple Inc. (NASDAQ:AAPL)’s Apple Pay system.
However, the difference with the technology Samsung will be using to battle with Apple Inc. (NASDAQ:AAPL)’s payment platform is that even on the onset, it would work in “far more locations than Apple Pay or Google Wallet,” Del Rey reports.
The reporter said that “several sources” have revealed that Samsung is indeed in talks with a startup in creating a wireless mobile payments system and launching it next year. That startup is LoopPay, which develops technology that can wirelessly communicate the identifying information that a debit or credit stores.
The technology seems simple enough to use. It’s similar to near field communication (NFC) in the sense that a user of LoopPay’s technology taps their LoopPay-enabled device near the terminal usually reserved for swiping cards.
The difference, however, is that stores do not need new equipment to get the information transmitted by the startup’s magnetic secure transmission devices which, according to Del Rey, includes a fob and a LoopPay digital payment card which can be secured inside a special smartphone case or used as it is.
With Apple Inc. (NASDAQ:AAPL)’s Apple Pay system and Google Inc. (NASDAQ:GOOGL)’s Google Wallet system, establishments need special NFC devices that can read transmissions from NFC-enabled smartphones.
Nonetheless, Del Rey’s report implies that Samsung’s system will also use NFC when available. The reporter also said that the fingerprint readers of Samsung smartphones are also likely to be used for the new payment system.
George Soros’ Soros Fund Management held about 1.14 million Apple Inc. (NASDAQ:AAPL) shares by the end of the second quarter. That’s a marked 38% decrease in the firm’s holdings in the iPhone maker quarter-over-quarter.