There is big relief coming forth for credit card holders with Samsung smartphones. A report published yesterday revealed that soon Samsung will have its own mobile payment system. The rumors are that this may happen next year. For this, Samsung is carrying negotiations with LoopPay, a startup based in Burlington, Mass. One of the people closing the talks has described that prototype has been developed and it’s working well with the handset.

Samsung aims at giving Competition to Apple Pay. That is the mobile payment system that Apple offers on the Apple iPhone 6, Apple iPhone 6 Plus, and the Apple Watch. The user chooses the credit card that he wants to use for a particular transaction. NFC connects and transmits the payment information while the iPhone being held over the wireless terminal. Touch ID verifies the identity of the person making the purchase.

In LoopPay, NFC is not applied. LoopPay uses “magnetic secure transmission” where you just place your device near credit card swipe terminal. LoopPay’s technology is currently available implanted in a digital payment card. You can also store the card in smartphone case.

Samsung aims for its own mobile payment system.

While LoopPay system is the outright copy of credit card swipe it can reach up till 10 million retailers against Apple Pay that reaches only 220,000.But the CEO of the LoopPay suspects that NFC might be added at any later stage because of loopPay’s use of magnetic stripes. According to the CEO, users of LoopPay will not need to open an app to make a payment.