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LG is getting ready to launch its own mobile payment platform to rival Samsung Pay

LG is set to launch its own mobile payment system, taking on Samsung Pay and Android Pay. The manufacturer has just partnered with Shinhan Card and KB Kookmin Card, two of the largest credit card companies in its home country.

There's no mention of when the service will go live in South Korea, although reports from yesterday suggested that it will be sometime next month.

It looks like LG will support MST (magnetic secure transmission) technology alongside NFC, with the manufacturer stating that it is targeting convenience and versatility with its payment service. The move will directly target Samsung Pay, currently the only mobile payment service to utilize MST. While NFC is gaining traction for contactless payments, going with MST ensures compatibility with older point-of-sale terminals.

Update: We've reached out to LG for comment, and have received confirmation that its payment service will be limited to the South Korean market in this current form.

Source: LG

Harish Jonnalagadda
Harish Jonnalagadda

Harish Jonnalagadda is a Senior Editor covering Asia at Android Central. He leads the site's coverage of Chinese phone manufacturers, and writes about the semiconductor industry, storage servers, and audio products. Contact him on Twitter at @chunkynerd.

  • cool, now they just need to lighten up their skin ... a lot
  • Yeah, like a LOT! But does EVERYONE need their own mobile payment thing going on? I mean come on, didn't Google pretty much take care of it with Android Pay? Posted via the Android Central App
  • There are plenty of countries where Android Pay isn't available Posted via the Android Central App
  • Competition is a good thing.
  • But what are they competing on? They're doing exactly the same things, and the space for innovation in this area is close to zero, thanks to how tightly electronic payments are regulated. Instead of all making their own branded systems, they need to all use a standard that is platform agnostic, that includes Apple. I'm not sure I see that happening for a few years though, and in the meantime it's going to be a lot 'competing' brands, and just being confusing for the customer. Which ultimately means Apple pay win out. Posted via the Android Central App
  • Completely agree
  • You asked what they're competing on, so let me provide you a few examples. 1. Google Wallet wasn't catching on in terms of user uptake, and neither was SoftCard (formerly ISIS). To better compete with Apple Pay, Google acquired SoftCard, created Android Pay and divested Google Wallet from it, made a clear, more user friendly interface, and the carriers backed off on blocking Wallet/Android Pay so that it wouldn't be just Apple's market. 2. To be Apple Pay compatible, banks had to agree to give a small cut of their interchange rate to Apple (rumored to be 0.15% of the transaction). Google isn't taking a cut of the interchange fees. This is a big deal due to the snowball effect. With only Apple in the market, issuers would have eventually raised their interchange rates to combat the loss of revenue, which would have caused merchants to raise prices. Issuers banded together (collusion?) and agreed to no more interchange fee sharing for mobile payments. Google agreed. Now when contracts expire with Apple, Apple has the choice of keeping the bank in Apple Pay sans interchange fees, or losing the bank's cards in Apple Pay (while the cards will remain Apple Pay compatible). With no competition for Apple, they would have retained leverage in negotiations to keep those fees. 3. Android Pay allows for instant integration of loyalty programs at checkout, something that Apple Pay wasn't doing. You can bet Apple will look into ways of adding this (if they haven't already). You may not be able to think of innovative ideas for this space (and I certainly can't), but there will be innovations, and the more companies that we have in the space, the quicker the pace of innovation. As illustrated above, the competition between Google and Apple has caused, 1) the carriers to release their grip on mobile pay, 2) a prevention of increased interchange fees, and 3) new features beyond just tap and pay (integration of rewards). The next front, however, is as you said; a platform agnostic approach. Now, Apple and Google aren't likely to move their mobile payments apps to other platforms. There's no money in it for Google and soon won't be any for Apple. So, it's just a feature to use hardware in their phones (NFC). But for companies like LG and Samsung, things are different. Samsung can bring Samsung Pay to Tizen. They can bring it to their smartwatches, forcing Google to compete and do the same (Apple Pay already works on the Apple Watch). Also, if Windows 10 Mobile gains any traction, we may need a third party app from Samsung, LG, or others, as Microsoft's Wallet app relied on SoftCard and I don't know if/how it even works today.
  • Great write up but you missed the point. The point is is that why does LG need to have thier own when there is android pay, samsung pay, and apple pay? There's no need to compete except to say that "we have our own", which is muddying up the system creating confusion. I think it's pure stupidity. Posted via the Android Central App
  • The point was not missed, and was addressed in the last paragraph. But I'll expand on it since I apparently didn't type a large enough wall of text last time. The point is this - Apple Pay works on iOS, and Android Pay works on Android. A duopoly is NOT A good thing. Microsoft isn't giving up on Windows 10 Mobile, and they don't have an alternative to Apple Pay and Android Pay, yet. So lets say Samsung makes phones with Windows 10 Mobile (they've made Windows Phones in the past). They can bring over Samsung Pay. Now lets say LG starts making phones with Windows. Do they use Samsung Pay? Can they? Do they go without an alternative? No, they're better off with their own ecosystem. And by having their own app, it means that users can switch from Android to Windows Phone or vice versa, but can remain in LG's ecosystem, meaning that LG raises their odds of getting that next phone sale despite the change in OS. "why does LG need to have thier own when there is android pay, samsung pay, and apple pay? There's no need to compete" Why do we need a new internet provider when we already have Comcast? (Do I really need to answer this?)
    Why do we need FireFox when we already have IE6 (IE had stagnated, FF came out, then Chrome, and browser innovation became a big thing)
    Or my favorite one...Why do we need Android when we already have iPhone (wasn't called iOS back then)? Competition is good. If LG brings something innovative, others will copy and we all benefit. If LG brings nothing to the table, it will probably die off. There's no harm so long as LG doesn't block or otherwise interfere with other payment apps on their phones, such as Android Pay.
  • Pretty much never read comments this long, but this was actually informative. Posted via the GS6 Active, aka GS6 M.E. (Manly Edition)
  • Correction under point #2 (can no longer edit): "Now when contracts expire with Apple, Apple has the choice of keeping the bank in Apple Pay sans interchange fees, or losing the bank's cards in Apple Pay (while the cards will remain Apple Pay compatible)." Should read as: "Now when contracts expire with Apple, Apple has the choice of keeping the bank in Apple Pay sans interchange fees, or losing the bank's cards in Apple Pay (while the cards will remain Android Pay compatible)."
  • And for those who are saying there's no room for innovation, I respectfully disagree. Innovation is when you do something that no one else has previously thought of. Just because you (or I) cannot think of an innovative idea doesn't mean that one of these companies doesn't have one ready to break out. Google Wallet was the first really big tap-and-pay idea that worked with a collection of your credit cards. Apple upped the ante by partnering with banks that gave users the benefit of better looking cards in the virtual wallet, increased security, properly passed on categorized rewards, fingerprint recognition, and likely others. Google copies this for Android pay and upped the ante further by allowing integration of loyalty programs. Someone else is going to further enhance this. There are many people who juggle cards for rewards (Card A gives me 5% here, and Card B gives me 5% there). Imagine setting up rules based on rewards programs that allows for cards to be optimally used when you tap to pay, IE, defaults for restaurants, a default for gas stations, a default for grocery stores, etc. Use your imagination, or don't, it's your choice. But more competition leads to more innovation.
  • nice job as usual Jay
  • Thanks, your check is in the mail ;)
  • Zombie comment
  • Google could have wiped the floor eith Android Pay. Android smartphones had NFC way before iPhones and yet they didn't capitalise on it. Now, outside of the US there is plenty of support for Apple Pay with stickers everywhere for it, some support for Samsung Pay and hardly any support for Android Pay. Banks are going head over heels to support Apple pay but very little interest in supporting Android Pay, it seems. It's Google who failed in this one. Posted via the Android Central App
  • Completely inaccurate comment.. Google did try. Carriers blocked it. They had a form of mobile payments and it worked well. Apple made it a little better and they had to revamp it and get carriers blessing (Buying ISIS). Anywhere that takes NFC payments takes Android Pay, sign or not.
  • Which carriers outside of the US blocked it and why should Google care when most phones aren't carrier models outside the US? Posted via the Android Central App
  • Its all about that MST. Android pay does not have MST only Samsung pay.
  • You racist bigot! Maybe you should just quit judging people by how light their skin is. /s In all seriousness though, their heavy skin is the main thing that deters me from buying their devices, along with some of their odd design decisions like the G4's curved display and the weird bar thing on the V10. But as far as having good and well-balanced specs, LG is one of the best, and I'd like to see them continue to succeed.
  • LG UX is still terrible IMO. Of all the main android OEM's (not including chinese) they're the only ones that haven't gotten their UI or software performance to where it should be yet. Samsung isn't quite there yet either IMO, but they've done much more to improve performance and UI aesthetics the last 2 years than LG has
  • Says the Samsung lover. I'd take lg ui over Samsung any day. Posted via the MATERIAL AC App
  • I think you're confused. Either that or you haven't read any of my comments the last 6 months And LG's software is a joke
  • I'm not confused I remember clearly how you praised the new and improved touch wiz from your unrivaled note 4. Day in and day out. Then you jump on anything that has to do with lg and it's ui every chance you get. I think it's comical do to the hundreds of comments about how great TouchWiz is. That got old to you so now you have changed your device but your comments cannot be changed. Truth be told any lover and fanboi of TouchWiz past or present has zero room talking about a hideous ui. Posted via the MATERIAL AC App
  • And I'm going to guess you have an LG phone? Posted via the Android Central App
  • And you're a jackass. I don't care whether or not you've read what I have to say the last few months about my reasons for disliking Samsung and preferring stock/nexus. I think pretty much everyone on here but you knows where I stand. And you disgust me for suggesting that I remain a fan of touchwiz/Samsung. Now piss off
  • lol, c'mon now my man, we're all entitled to change our opinion!
  • You know what they say. One of the worst personal flaws in life is when someone is either unwilling or unable to change their mind. At least that's the way I remember it anyway, lol
  • Too bad there's no way to change it, oh wait...
  • So I gotta know- What dont you like about LG's skin, and what LG phones have you owned to have that opinion?
  • My wife had a G3 for about 6 months that I would use frequently. I'm not a big fan, but if you are that's fine. Its just a freakin phone
  • Agreed, its just a phone. I didn't mind it on the G3 and 4. Just wondering how you have such disdain for it, as I never recalled you posting about one. More than anything, for me, the washed out screen on the G3 bothered me.
  • I really don't have too much disdain for LG's Android devices. I just don't like their software personally. I've mentioned it a few times on here before. It really isn't that bad though. I'm just at the point where I prefer Google's flavor of Android and nexus/moto over everything else. But I try not to be biased
  • I would take lg or Samsung anyday and I had a note 2 for 3 years.
  • No way! That LG UI is a grotesquely over skinned crap pile. I mean Samsung's isn't perfect but LG's is terrible.
  • I'm still no fan of LG UX. Yeah, it worked way better on my G4 than the G3, but it does look ugly The new Hamilton Beach SD toaster. Powered by the Snapdragon 810.
  • LG UI is fine for my use thankfully!
  • lol, when I first read that I was like what?! 16 in the clip and 1 in the hole
  • LG has one of the worst skins. Touchwiz is even better albeit that one has horrid RAM management Posted via the Android Central App
  • Great. Just what we need, another mobile payments platform. Posted via the Android Central App
  • Exactly what I was thinking, lol.
  • Yet another company joining the electronic payment race. But none of them are getting it right! Samsung is the closest with both MST and NFC payments, and luckily LG is following suit, but again with such a limited backing of banks, they are missing millions of people who could be using this service. I personally really like paying with my phone (and soon my watch, hopefully), but Android Pay/Apple Pay only uses NFC, which is useless at all but the newest/trendiest places in the city and Samsung, while having MST only has 3 banks behind them so I can't use my local banks debit card of which 90% of my spending goes through! Very frustrating and it all just makes me use the old fashion wallet with a card in it... Posted via the Android Central App
  • Seems that everyone is going to have their own mobile payments and they will all slowly fade away...
  • Except Apple pay, which will dominate until everyone gets their act together. Posted via the Android Central App
  • This seems to be the constant.. We, the Android community , must tweet, leave feedback, Google+, etc directly to Google to expand the Nexus program to have more phone choices. Something for everyone. So we can unify the Android platform and drive manufacturers that keep fragmenting Android out of business or comply. Nexus is the only way to go with Android. (Moto & Blackberry have a lot of potential). We need to stop duplicate apps and services. Or we can all buy iPhones in the coming years and accept defeat.
  • How exactly is it dominating? I haven't seen or heard of a single person using Apple Pay. And it's just as limited by NFC terminals as every other pay system other than Samsung Pay.
  • It is dominating in mindshare and advertising, if nothing else. There are shops all over the place that say they accept apple pay, I've yet to see a single sign for Android pay. Part of that will be that I'm fairly sure Android pay isn't available outside the US, so that's another way that Apple is dominating. Are places going to have signs up saying they support Samsung Pay? I doubt it. And LG pay is even less likely. So to the public at large, who don't know about this stuff, all they're going to know about is Apple pay, and maybe a vague awareness that other phones might work, but with no real idea which or how, or if they should even bother. Posted via the Android Central App
  • How many different payment systems can there be? Posted via the Android Central App
  • Hmm... It's all about the banks ... Posted via the Android Central App
  • I'll stick with using cards. I have to carry my ID/wallet wherever I go anyways. I don't find swiping cards to be the slightest of inconvenience to me. This is all a gimmick to me. Just like slow wireless charging. ASUS ZenFone 2 (4GB RAM)
  • Just like fast wireless charging, wait until it becomes more refined and you eventually may see that it can be a useful tool. Not so much a replacement but enhancement S-Pen goes *** click ***
  • The thought of wireless quickcharging is droolworthy. ASUS ZenFone 2 (4GB RAM)
  • I'm 100% with u. At the end of the day u still need to reach in your pocket /purse to grab your phone. At that point what's the difference if u grab your credit card Posted via the Android Central App
  • Security. I don't have to give or show my card to another vendor. Posted via the Android Central App
  • Lg can't stop losing their own money. I wouldn't want them anywhere near my money lol. Posted via the Android Central App
  • You know LG is not only producing smartphones? LG Flex 2 (5.1.1)
  • Of course I do. I have an lg washer and dryer. I guess I should have specifically stated lg mobile phone division but since this is a mobile phone forum I thought anyone with half a brain would realize that is what I was talking about. Sorry if you couldn't grasp that. Holy cow I see you have one of Lgs Biggest flops the lg glex flex 2 now I know why you were so easily confused lmao. Posted via the Android Central App
  • Biggest flops? Couldn't find a better smartphone for 200 something Euro brandnew unlocked. Which phone offering more at this price point. (200-250) I'm all ears, please tell me. LG Flex 2 (5.1.1)
  • You're so naive... you do know the lg glex 2 is that price and has been for quite awhile BECAUSE it did not sell well. It was priced as a flag ship when it fist came out but within a month or two it was slashed by around 50 percent because no one wanted to buy it. Except for a few suckers lol. Posted via the Android Central App
  • You're an absolute idiot, and missed his point.
  • He didn't though, just because a phone is good doesn't mean it's a success. Posted via the Android Central App
  • A bit grumpy bplink95, eh.
    Have a snickers! Posted via the Android Central App
  • Or a Raider. For him it's the biggest flop , for me it's the best smartphone money can buy right now. Between 200-250 you get a lot. Even an IR-Blaster, FM-Radio and a very good Camera is included which shoots 4k videos. Alll powered by the latest and greatest Snapdragon 810 :) LG Flex 2 (5.1.1)
  • How much money did lg mobile phone division lose last quarter alone because they are making phones no one is buying? Like 68 million lol. If the nexus 5x and the v10 (which already flopped in Lgs home County) don't pick up some slack they'll lose even more this quarter. LG is not making phones that people want.... Posted via the Android Central App
  • This space is getting saturated pretty quickly Check out my new YouTube channel for tech reviews!
  • I wonder if this means they have phones out already (in Korea) that support MST, or if new phones will have to be made to support the technology, especially if it supposed to be available before the end of the year.
  • ...
  • Just stop, we dont need a hundred competing payment systems. We need a standard that get mass adopted!
  • So it'll be a fragmented mess? Just have Google work with companies to bring MST to all devices and end this whole saga already. One service that works with everything is better than lots of services that works only in a few devices. Yeah, yeah. Competition and all, but this is gonna be a fragmented mess if everyone creates their own payment service.
  • I was under the impression that Samsung had a patent on MST or something. I guess that's not the case. This could actually be a good thing. If more phones start coming with MST, Google should just add it to Android Pay. Then at least android phones will have a standard to go by. Posted via the Android Central App
  • I was thinking the same thing. I wonder where lg is getting their mst technology from.
  • I have Capital One as my bank and it provides its own NFC payment system bypassing Android Pay completely. So it seems now we have Android Pay, the phone manufacturers and the banks themselves in the same space. It will be interesting to see how this finally shakes out. Posted via the Android Central App
  • Hopefully retailers will also see the light and institute their own NFC payment systems. Preferably by branch, so that what works at one Starbucks won't work at another. The further we atomize the NFC space the richer in systems we will be. Usefulness may suffer a little, however.
  • LG is bad a arithmetic
  • I was all for Android Pay and don't like how manufactures are trying to define there own standards. Ultimately 1 thing prevented me from continuing to use AP. AP requires a lock screen with pin, pass, or fingerprint. Although I was willing to give it a try smartlock did not work as it should in trusted locations and there was no way I was going to unlock my phone every time I wanted to use it at home (use it as a AV and home automation remote) do despite my disapproval of Samsung once again trying to define there own standard I and that I missed using electronic smartphone payments (Google Wallet) I decided to give Samsung pay a try and I have to admit the MST technology is awesome! I can now pay with my phone at just about any location (severely limited before with Google Wallet). And the comments/feedback from cashiers is priceless when they say "That won't work here" or "We don't support ApplePay" then I say this ain't no iPhone and watch this! :)
  • The copying Samsung. Posted via the Android Central App
  • I think to remain competitive, Android Pay will have to support MST. That will speed the obsolescence of the Nexus 6P phone I just bought - which doesn't have MST or OIS or QI wireless charging [sigh].
  • Someone, Anyone, get this mobile payment thing worldwide and not just US only. To be honest, I would expect in a years time we will only be seeing Apple Pay and nothing else in Europe.
  • Why? Posted via the Android Central App
  • About time!! Posted via Android Central App
  • At this point in time most people are limited to one payment system by what Hardware they have. I am a Moto guy and am not going to change to Samsung or LG just to get a different form of mobile payment. I love the convenience and security of Mobile pay and think that as the new chip and pin cards gain a bigger audience in the US MST will become less important. Having said that I really would like Google to add it to Android pay. Anyone have any insight into how LG is using MST as I thought Samsung bought the company that made that tech?
  • Why??? All we need is Android Pay, and Apple Pay.
  • Terrible. I'm very happy here in Canada, that banks are using existing NFC technology on their POS terminals and mobile apps. I trust the privacy policy and security of my bank over Google or Apple. Posted via the Android Central App on my BlackBerry Passport