LG prepares to launch rival to Samsung Pay

by: Rob TriggsNovember 18, 2015
723

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It seems that earlier reports were correct, as LG has announced that the company is preparing to launch its own mobile payment system, which will see the company directly compete with services like Apple and Samsung Pay.

Speaking earlier today, LG Electronics stated that it is preparing to sign a deal with a number of major card companies in South Korea. Local reports suggest that a deal with Shinhan Card and KB Kookmin Card, two of the largest card companies in the country, could be signed as early as Thursday. However, LG has not announced when the service will go live, what the service will be called, or exactly how it will work.

We probably have a pretty good idea about what type of name the company will use though, as LG has registered trademarks for a number of potential service names in both Korea and the US. These including “LG-Play” and “LG G Pay”.

“We will sign a deal with some of the country’s major card companies before officially launching our mobile payment platform,” – LG Electronics official

Perhaps one of the biggest unknown details is what technology LG will be basing its payment system on. Samsung Pay is currently in the strongest position with its magnetic secure transmission (MST) technology, which supports a wider range of payment terminals than the NFC based technologies used by Apple or Android Pay. Previous reports suggest that LG is looking at a more versatile technology than current implementations, but this doesn’t shed much light on the situation.

“The competition for the mobile payment market is so fierce, as an increasing number of IT giants are betting on similar services.” – Noh Geun-chang, analyst at HMC Investment & Securities

With a number of mobile companies moving quickly ahead with their own mobile payment systems, LG is going to have a tough time catching up if it cannot offer consumers a very compelling reason to make use of its particular service. LG is expected to make an official announcement about its payment service once the card deals have been finalized, which could be as early as next month.

  • D C

    As long as LG’s implementation is compatible with current terminals/standards and doesn’t require anything special, sure why not have another system. I just wonder what they are going to come up with that is “a more versatile technology” than Samsung’s MST.

    • TV Monitor

      This is supposed to be a QR code/barcode type system similar to Alipay.

      • D C

        If it is a QR code system then we need to burn it with fire…

        • TV Monitor

          D C

          Even Samsung Pay in China supports QR code interface. The QR Code is a legitimate mobile pay interface in Asia, and this may be the reason why LG Pay would use it.

  • The question is, if it’s only using NFC, why would a customer or bank want to use LG G Pay over Android Pay?

    • D C

      If banks are able to work out a better transaction fee deal with LG then they will opt for it over Android Pay. Always about the $$.

    • TV Monitor

      Geoff Johnson

      LG Pay has QR/Bar Code back up in case there is no NFC.

  • David Onter

    Not another one…

    • TV Monitor

      David Onter

      LG comes from a country with a dozen different mobile payment systems, so adding one more is no big deal to them.

      Heck, in Korea, you have a system where the casher’s register can call your phone and you press the button to confirm the charge when all else fails.

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  • ConceptVBS

    Sorry, but if you dont have MST technology, you are bust LG.

  • TJ

    Can’t wait for this crap to die out already.

  • aaloo

    where apple leads, others follow. yah yah yah, i know there were other payment systems before, but no one cared about them.