LG Pay mobile payment service announced in Korea

After Apple, Samsung and Android, LG has announced its own mobile payment service called LG Pay. The Korean tech giant has partnered with Shinhan Card and KB kookmin Card to prepare the launch of LG Pay in South Korea soon.

"It’s official! We have partnered with Shinhan Card and KB Kookmin Card to prepare for the launch of LG Pay," the firm said, adding that the service will be made available first in its homeland, South Korea.

Wi Sung-ho, CEO of Shinhan Card, Juno Cho, president and CEO of LG Electronics Mobile Company and Kim Duk-soo, CEO of KB Kookmin Card were present at the event. LG didn't reveal any more information about the service, but said that it "will have more details in the coming weeks".

However, details about the LG Pay system has come out of South Korea.

The LG Pay system will be able to be used in all LG smartphones, unlike Samsung Pay which is available only in the recent Samsung smartphone models, reported South Korean wire service Yonhap.

A new industry source claims to reveal how the LG Pay service will work (via). LG’s mobile payment service will not be based on NFC or MTS. Instead, LG Pay is said to rely on a special credit card replacement which will connect with your smartphone and be used for the service. The card will connect to your smartphone via a dedicated app, and users will be able to link multiple cards with it. While Samsung has used Loop Pay technology to ensure you don't need to carry extra cards around, LG has embraced it.

A specialized card might allow LG Pay to support mid-range and even low-end phones, whereas Samsung devices need a dedicated hardware for Samsung pay to work.

Samsung launched Samsung Pay in South Korea in August, where it accumulated $30 million in transactions during its first month. Later the service launched in the U.S on September 28 and is expected to expand to China, Spain and U.K during Q1 2016. Samsung Pays uses NFC (Near Field Technology) and MST (Magnetic Secure Transmission) to enable its phone-based payments. Since MST technology is used by most of the retailer that swipes a credit card, Samsung Pay can be used at more retailers than Apple Pay and Android Pay.

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