LG Electronics has signed agreements with credit card companies, KB Kookmin Card and Shinhan Card, to launch a new mobile payment system of its own and to go against Samsung Pay and Apple Pay.
Cho Juno, Chief of mobile division for LG, firmly believes that the company can provide its customers with a reliable payment system that will provide convenience through strategic partnerships and collaborations, states ZD Net.
The name, LG Pay, has been registered and trademarked in South Korea and United States. The announcement of plans to create LG Pay came together with the launch of the company's latest flagship, the LG V10, according to Beta News.
LG is yet to give details as to how they intend to make their version of the mobile payment system work. The company did mention that the intent is to make a versatile and secure means of mobile transferring of currency to make LG Pay safe and easy to use anywhere, without regard to the type of merchant terminal.
PC Magazine Asia reports that the service is expected to operate through NFC services made available on LG smartphones, and will not be compatible with other platforms or manufacturers. There is a reason to believe that the roll out will start first with the company's home country, South Korea, and will soon after roll out internationally to compete with other worldwide mobile payment systems.
LG is entering hot competition, as other players have entered very recently. Google, for instance, just introduced Android Pay to users just last May, and has already surpassed Apple Pay in terms of users utilising the service.
Samsung appears to be promising significant competency with its magnetic secure transmission (MST), which will support a wider range of payment terminals than NFC-based technologies, such as the ones Apple Pay and Android Pay operate on. Samsung Pay is available on the Samsung Galaxy S6, S6 Edge, S6 Edge+, and Note 5.
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