Inside Secure has worked with LoopPay to enable its LoopWallet solution to make secure transactions at mag-stripe POS terminals.
LoopWallet uses magnetic induction to communicate with traditional POS terminals, overcoming issues around NFC-compatibility and without requiring updates to in-store infrastructure. The wallet can also receive data from the terminal, which could include offers or other value-add services pushed by the retailer.
But the Loop solution is potentially not the silver bullet consumers will be looking for. Users either need a case or a fob – much like an mPOS reader – attached via the phone's audio jack to make it work. The company is also in very early stages – and trying to fund the idea on Kickstarter.
“There are hundreds of mobile wallet solutions out there today, but they don’t work at retail locations because the stores’ POS terminals can only read mag-stripe cards,” said George Wallner, Loop’s founder and chief technologist. “Our breakthrough Magnetic Secure Transmission technology is now combined with industry security standards. With the help of INSIDE we can make the real value of a mobile wallet available to consumers for the first time.”
