Samsung acquired LoopPay in a bid to compete with Apple Pay. Apple Pay has been making a lot of noise lately; since it launched, it has gained widespread use with banks, businesses and even the U.S. government. As a result, many companies are trying to create or refine services to compete with Apple.
Last week, Google announced a new service called Plaso that will help it compete with Apple Pay, and Square announced that it's developing a new product of its own.
LoopPay uses a case that is compatible with many smartphones on the market today. The case has NFC technology as well as the ability to function with magnetic card readers. This ability to be used with existing credit card reading technology will help ease adoption when it's used with Samsung's phones, as it essentially works just like a regular credit card.
Samsung entered negotiations with LoopPay in December to work on a combined effort, but it appears that Samsung simply decided to buy them out.
Although it isn't clear how Samsung will utilize the technology from LoopPay, we will probably see in the near future. There might be sharp competition if Google and Samsung manage to get their pay programs up around the same time, however.
Apple Pay is only for Apple devices, which essentially gives the company universal adoption amongst its iPhone customers, with no competition. Samsung and Google won't have this advantage when their pay programs start rolling out, and this could result in the Android market being heavily divided.
Samsung likely has an advantage over Google, as it doesn't require retailers to do anything for LoopPay to work. With Apple Pay's popularity growing quickly, though, competing companies will need to start making their moves soon.