According to a report last year, Samsung plans to incorporate LoopPay’s technology in an upcoming flagship phone, likely the Galaxy S6. Now, it is confirmed that “Samsung has acquired LoopPay, a mobile payments company whose technology could allow it to build a viable Apple Pay competitor.” This multinational acquisition will drive the company to lead mobile commerce market through the help of developing the mobile wallet with the most secure experience for users.
In response to the falling market share (which dropped 9 percent last year in Chinese market), Samsung is intended to have a fundamental reform not only to the product line, but also the technology applied in its new products.
Data the People’s Bank of China released recently shows that with the rapid growth of mobile payment business, the amount increased 134.30% year on year in 2014. The current situation provides a big opportunity for mobile commerce market. How to grasp the opportunity has become a primary problem for the Samsung group.
In order to win a place in the mobile commerce market, there are several recommendations for Samsung. Firstly, it needs to focus on cultivating the users’ habits of using mobile payment as well as carrying out abundant value-added services. Mobile payment is a kind of cross-industry business. It is important for Samsung to better promote more industry cooperation. In addition, although there is a potential development space for mobile payment, the security for mobile payment is a huge challenge in the process of broadening the business. Apart from the payment confirmation though binding the mobile phone number and message authentication code, Samsung also requires to set up high-level safety protections for mobile payment services as well as application platform to prevent malicious code and virus attacks.
To conclude, the acquisition of LoopPay would strengthen Samsung’s overall efforts to provide users with seamless, safe and reliable mobile wallet solutions with the following development.