Samsung Buys LoopPay, a Competitor to Apple's Mobile Wallet - NYTimes.com

Check this page for details on how LoopPay works; it requires a separate device

"LoopPay, however, believes its reach will extend far beyond that of Apple Pay. LoopPay’s underlying technology relies on a magnetic transmission sent from a user’s phone to a merchant’s payment terminal, mimicking a credit card swipe. The technology, according to LoopPay, can be accepted in more than 90 percent of existing point-of-sale terminals. It is unclear if LoopPay will work on chip-and-pin terminals, which use a more secure form of credit card technology and are being widely phased in this year.

Apple Pay relies on near-field communication technology, which Apple says is available at approximately 220,000 American locations."

Samsung Buys LoopPay, a Competitor to Apple's Mobile Wallet - NYTimes.com