Analyst: Samsung’s LoopPay acquisition is ‘totally useless’

“‘I think the technology of this stuff is totally useless,’ Global Equities Research analyst Trip Chowdhry told Benzinga. ‘Google has learned from the mistakes it made with Google Wallet. Apple already knows the value is having a secure element in the device. I don’t think the company Samsung has acquired is any good,'” Louis Bedigian reports for Benzinga.

“Chowdhry said that Samsung’s acquisition indicates that the electronics giant is ‘totally clueless when it comes to what is the key thing’ needed to be successful in mobile payments. He would have been more impressed if Samsung had acquired Tyfone,” Bedigian reports. “‘A company to keep an eye on is Tyfone,’ Chowdhry continued. “They have the key technologies, which… some people believe Apple has copied their design philosophy because Apple has a secure element in the chip.'”

Bedigian reports, “He concluded, ‘[Samsung’s acquisition] is dead on departure. Samsung doesn’t understand the payment model.'”

Read more in the full article here.

[Thanks to MacDailyNews Reader “Arline M.” for the heads up.]

Related articles:
Samsung buys Apple Pay competitor LoopPay – February 18, 2015
Slavish copier Samsung in talks to launch Apple Pay knockoff – December 16, 2014

23 Comments

  1. Seems that with the shakeup in Samdung’s mobile unit they have lost the ability to copy exacting details, and now seem to be floating through the streets of disturbia.

      1. Samsung’s answer to the iPhone 6 is the Galaxy S6. This puts Samsung over a year and a half behind Apple, to put it kindly. Then there’s the 64-bit A8 CPU that has no equivalent in the Android phone community. We still have no idea when they’ll even attempt to catch up.

  2. I enjoy apple pay but at the same time the author’s viewpoint is wrong. Loop pay is exactly the company that Samsung should have bought. I also happen to have an ANX Bitcoin visa. Adding it into the loop software just makes it that much easier to use Bitcoin.

    1. If Samsung bought LoopPay because it has Bitcoin included, Samsung is even dumber than I thought. Bitcoin is a fringe currency and isn’t accepted hardly anywhere, and probably never will be widely used because governments and most businesses simply don’t know what it is and don’t want to be bothered finding out. Banks won’t touch it, so it will be excluded from the vast majority of legitimate transactions.

  3. The degree to which Scamsung’s flame depended on large screen phones is astounding. They were having nightmares when those rumors of 4.7 and 5.5 inch iPhones took flight while I was having wet dreams. And to think we had some in the community who insisted that Apple just stick with a 4 inch phone. Imagine how different these companies’ trajectories would be had Cook & Ive made that foolish decision.

  4. It’s very simple — no company is going to get the banks to push and adopt a different payment technology unless that technology benefits the banks’ bottom line. Simply having another version of the insecure magnetic stripe reader is useless to the banks.

    Pay is being adopted in droves because of the massive security upgrade the system introduces. The banks don’t have to invest in putting chips into cards, or doing significant server upgrades, because Apple handles all the heavy lifting. All the banks have to do is integrate their systems with Pay, which I’m sure Apple sends a team over to basically do it for them.

    The banks then receive the Holy Grail of security and fraud protection. It’s nearly impossible for someone to steal your credit card information from a merchant, card stripe or terminal, which has been the biggest source of identity theft and cost the banks billions of dollars (both fighting and paying unauthorized charges).

  5. The BIG FAT reason why LoopPay is a total waste of time:

    It enables lazy retailers to continue using the Windows XP Embedded POS POS devices that are the entire SOURCE OF THE HACKING PROBLEM!

    Why are these POS POS devices so dangerous?
    — They store customer data in-the-clear in their RAM. A person swipes there card, or triggers their LoopPay device, and all of the contained data is transferred in-the-clear into RAM.
    — Windows XP Embedded malware then READS that in-the-clear data and sends it off to a hub, set up by the hackers, with the company’s own network.
    — The hackers then use their cracked account on the company network to grab all the account data via the Internet.
    — The accounts are then SOLD ONLINE.

    The ONLY solution to this problem is to DUMP the POS POS devices into the dumpster and get a system like Apple Pay that uses one-time-key technology to trigger account activity; OR to use end-to-end encryption, from the POS device all the way through the company network. Decryption must be required for access to ANY/ALL customer data at all times. No in-the-clear data EVER.

    All LoopPay does is enable the POS POS devices to continue being used by lazy, stupid, cheapass retailers. That’s BAD.

    1. Apple needs to strategically buy Tyfone. However I think the ramping costs to implement a payment system is so high, I can’t imagine any no-name company breaking into this field. They have to piggyback off something already existing. With that said, the only value to Tyfone, is keeping them out of someone else’s hands.

      1. Yes, POS POS is deliberate, At this point in time these Windows XP Point Of Sale machines are THE problem and must be destroyed. EXTERMINATE! EXTERMINATE! Crap like LooPay enables lazy, cheapass retail biznizziz to keep the POS POS devices.

  6. Why does this flaming asshat Chowdry get any ink ever? Seriously – who the fuck does this guy know that he can be so consistently brown-acid-high about technology and still get quoted by a news outlet?

  7. All this talk about LoopPay, and most articles barely touch on what it actually is: It’s a technology that allows you to “fake swipe” your card by allowing the phone to communicate directly with the read head in the swiping groove. You hold your phone up to the swiping groove, and the terminal is tricked into thinking a card has been swiped.

    Which is totally f***ing useless, because by the end of the year, most retailers will have switched over to chip readers. The swipe groove will only be for legacy cards, and those should go away within a year or two. So LoopPay’s signature technology was completely obsolete before Samsung even bought them.

    Either Samsung is way the hell more stupid than even we gave them credit for, or Samsung sees some value in LoopPay’s software, despite the immediate obsolescence. I just don’t get it.

    ——RM

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