LG Electronics signed partnership agreements on Thursday with South Korean credit card companies KB Kookmin Card and Shinhan Card, in preparation for launching its own mobile payment system against rivals Samsung Pay and Apple Pay.
"LG Electronics can deliver mobile payment services that can be used conveniently anywhere through strategic collaboration with key partners like these," said Cho Juno, chief of LG's mobile division.
LG said the strategic partnership with domestic credit card companies further spurs its preparation for the launch of its own mobile payment system, which the company called "LG Pay" in its press release.
"Shinhan Card's settlement capability and LG's mobile payment technology is combining together in a creative FinTech service such as in LG Pay," said Shinhan Card CEO and President Wi Sung-ho.
LG is yet to explain how exactly its mobile payment system will work and what technologies it will employ to differentiate it from Samsung Pay and Apple Pay.
But LG did say it will offer the versatility and security to make LG Pay safe and easy to use anywhere, without regard to the type of merchant terminal.
Currently, Samsung Pay appears to be 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 Pay and Android Pay.
"The LG Pay mobile payment service will provide a consumer-oriented and general-purpose payment experience from the existing mobile payment systems," said KB Kookmin Card CEO and president Kim Duk-soo.