​LG Pay to get one-time password, IC chip

LG has added integrated circuit and one-time password technology to its yet-to-be-launched namesake mobile payment service.

LG will add integrated circuit (IC) and "smart" one-time password technology to its mobile payment service LG Pay, the company said.

South Korea's second-largest electronics maker signed a MOU with KB Kookmin Bank on Thursday and agreed on deploying the service together.

Having an IC chip will allow LG Pay to be used with ATMs with ease as well as nearly all kinds of payment readers, and will also increase security, the tech giant said.

LG and KB will cooperate to create financial services exclusively for LG Pay as well.

One-time password refers to the different security code created for each payment to banks for enhanced security, in essence similar to that of tokenization used by Samsung Pay.

LG Pay has not started commercial service. A company spokesman said it expects deployment sometime in the second half of the year.

The company is noticeably late to the game. Samsung and Apple launched theirs last year and in 2014, respectively, and are expanding them globally.