Loop Brings A Whole New Way To Make Payments With Credit Cards.
Loop, A Boston based startup has recently released a mobile payment device that can work with even the most traditional of retail outlets in the U.S. The Loop Fob is a small gadget that will allow the user to store credit card information on their on their iPhone device, and can pay at the magnetic stripe reader with not wires necessary.
The mechanics behind this device is called “Magnetic Secure Transmission” which develops a small magnetic field around itself in inductive loop. This magnetic field is detected by the device used to swipe credit card reader. this leads the device into being fooled that its reading a normal credit card and accepts the swipe. With these results, a person can now digitally store any credit card onto their iPhone and use it anytime they wish. There is one similar to the loop that has been out for a while called Coin, which was previously a prototype sometime last year, but was finally complete and released. The Loop manage to recently acquire a funding of $10 million funding round from it Loop Fob Kickstarter campaign.
The Loop Fob can be used with an iPhone device or be used individually as long as a single card has been stored, separately at any store. The company has mentioned that the payment data is secured by encryption on the Loop Fob and not on the iPhone Device itself.
“With its patented technology, payment card data is encrypted and stored in dedicated hardware secure memory, within the Loop Fob or any Loop enabled device. Partnering with payment card issuers, Loop’s technology can also generate dynamic card data every time a payment is made, making such data unusable for those trying to clone a card. Its contactless chip does not wear out and fits into virtually any form factor that consumers want to carry – from smartphones to fobs, to charge cases, to smart watches, the possibilities are limitless.”