Samsung Electronics has announced it is to buy LoopPay, the startup that has developed a way for mobile payments to be made at standard magnetic stripe card terminals. LoopPay’s technology is expected to form part of a new service to rival Apple Pay that will be announced at Mobile World Congress 2015.

“LoopPay’s technology has the potential to work in approximately 90% of existing point-of-sale terminals, according to internal research, with no investment in new infrastructure required by merchants,” Samsung says.

“LoopPay will join Samsung to strengthen the company’s overall efforts to provide users with seamless, safe and reliable mobile wallet solutions.”

“As part of the acquisition, LoopPay founders and veteran payment industry entrepreneurs Will Graylin and George Wallner will work closely with Samsung’s mobile division,” Samsung adds.

“LoopPay has built an advanced and widely accepted contactless payment solution using its patented magnetic secure transmission (MST) technology. LoopPay’s talent and technology, paired with Samsung’s world leading mobile technology, global presence and distribution capabilities, will help drive the next wave of innovation in the digital smart wallet.”

“This acquisition accelerates our vision to drive and lead innovation in the world of mobile commerce,” says JK Shin, president and head of IT and mobile division at Samsung Electronics.

“Our goal has always been to build the smartest, most secure, user-friendly mobile wallet experience, and we are delighted to welcome LoopPay to take us closer to this goal.”