Samsung has been one of Google’s key Android partners but it did go ahead and develop its indigenous operating system Tizen. Google was reportedly irked when Samsung decided to use Tizen OS for its smartwatches. Now there may be discontent brewing between the two tech giants again as Samsung has purchased the mobile wallet company LoopPay. Samsung is expected to incorporate LoopPay’s mobile payment system in its new flagship Galaxy S6 that is likely to be unveiled on March 1 at the MWC 2015 in Barcelona.
Google has been making several improvements in its Google Wallet to make it popular but it is not yet picking up speed among Android users. Acquisition of LoopPay by Samsung has dashed Google’s hopes for a single mobile payment system for the Android platform. David Eun, Samsung’s head of Global Innovation Center said that although Google is “a super-important strategic partner” Samsung has to remain committed to its customers by “creating the different experiences and devices that they want.”
Google Wallet and LoopPay both work differently. Google Wallet and Apple Pay both use NFC based payment systems which need special terminals. On the other hand, LoopPay uses a magnetic stripe on its card to store information. Users can keep this card inside the phone case and payment can be made by just taping the phone at the terminal. About 90% of payment terminals already support LoopPay while there are very few stores outfitted with NFC terminals.
Well, if efforts of both Google and Samsung succeed, Samsung’s new smartphone could end up offering both the payment services, which could then be quite confusing to some of the users according to Tim Sloane, a payments analyst at Mercator Advisory Group. A source familiar with Google’s way of thinking says that the company may be ok with this double payment system. According to him, Google believes that multiple payments apps can co-exist in one phone.
Source WSJ
Google believes Samsung’s new phones can support two mobile payment systems
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