Samsung Pay isn't live yet, but when it launches this year it may quickly become Apple's biggest competition in the mobile payments market—at least here in the U.S. Now, a new report claims to reveal exactly how much Samsung paid for the new technology.

Citing multiple sources, Re/code says the South Korean company paid $250 million to acquire LoopPay, which provides the technology behind Samsung Pay. The report adds that the actual price could be even greater, factoring in potential earnouts depending on how well the new service performs.

The service reportedly came together thanks to multiple acquisitions, along with specially-hired employees and plenty of patents.

Unlike Apple Pay, which requires an NFC connection, Samsung Pay should work at any store with a regular magnetic strip credit card machine. That's thanks to LoopPay's technology, which uses an alternating current to mimic a traditional card. The service should work at 90 percent of existing point of sale terminals at launch.