Visa Invests in Mobile Payments Processing Company
Published on: 30th Jul 2014
The mobile payments processor, LoopPay says that it has received an investment from Visa, although it declined to say how much the investment was worth.
The investment is said to be part of a larger strategic funding round for LoopPay, announced earlier this month, which includes Synchrony Financial (formerly GE Capital Retail Finance) and other strategic partners not yet named.
LoopPay invented Magnetic Secure Transmission (MST) technology which leverages existing point-of-sale infrastructure to receive contactless payments from mobile devices of all kinds with no hardware changes required by merchants. MST aims to reduce reliance on magnetic stripes to store and transmit cardholder data, and instead uses a secure chip to store and transmit data to existing POS terminals via a small low-cost inductive loop that could be embedded in a variety of devices, including smartphones.
"Visa continually evaluates and invests in new technologies that have the potential to transform mobile devices into secure payment vehicles," said Jim McCarthy, senior vice president of innovation and strategic partnerships, Visa. "LoopPay has developed compelling technology that has the potential to enable merchants to accept payments from mobile devices using their existing point-of-sale infrastructure."
LoopPay recently announced the availability of its latest consumer product, the LoopPay ChargeCase , which enables mobile payments through a protective iPhone 5 and 5s case that also extends the iPhone's battery life by up to 60 percent.