A general view of the LG logo at the 2013 International CES at the Las Vegas Convention Center on January 8, 2013 in Las Vegas, Nevada. (Photo : Getty Images/David Becker)
LG Electronics Inc. is expecting to launch its new mobile payment system, dubbed as LG Pay, in its home country in June, which should compete with other products like Samsung Pay, Apple Pay and Android Pay.
Last week, LG Electronics has secured an agreement with U.S.-based Dynamics Inc. for the release of its payment service LG Pay. According to Yonhap News, LG will integrate the Wireless Magnetic Communication technology of Dynamics Inc. to its payment system, which allows people to make payments by touching their smartphones to regular credit card devices.
"Dynamics is (LG's) strategic partner securing the most advanced technology in the mobile payment business. We will try to give more benefits to consumers through LG Pay," said Kim Hong-joo, head of LG Electronics' mobile communications product planning unit.
Through the LG Pay, customers can pay transactions through several credit cards saved in their phones without the hassle and risk coupled with them. This mobile payment system is knowingly similar to Samsung Pay, which is marketed by Samsung Electronics Co. However, the algorithm in LG Pay is different on how Samsung's MST operates.
According to Korea Herald, LG is negotiating with South Korea's eight credit card companies for the payment mobile system. Right now, seven of the said companies have confirmed in putting the service on their system.
Although the LG Pay has not been fully administered in Korea, LG's flagship phone LG G6 already comes with this mobile payment system. In addition, the company is eyeing to tap other handsets with LG Pay through software updates.
On another note, the LG G6 is highly received by customers as it skyrocketed in first place on local smartphone markets in Korea since its launch last March 10, based on local research form Atals Research and Consulting. As proof, the LG G6 marked more than 30,000 units sold, the company said.
As of this writing, LG has not announced further plans on expanding the service to outside markets. LG Pay is not yet confirmed for other devices or if it would generate revenue. As for its future, LG plans to expand the service into online payment, membership services and banking services.
