BUSINESS

Latecomer LG Pay to feature IC chip, one-time password

By Korea Herald
  • Published : Jul 6, 2016 - 11:05
  • Updated : Jul 6, 2016 - 15:00

[THE INVESTOR] LG Electronics’ mobile payments service LG Pay -- expected to debut in September -- will feature more diverse functions such as an integrated circuit chip and one-time password, industry sources said on July 6.

Unlike its app-based rivals such as Samsung Pay, the LG service is expected to come as a tangible smart card.

LG had planned to launch the service within the first half of this year but the plan was delayed to extend partnership with local banks and card companies.
 
Unlike other app-based mobile payments services, LG Pay is expected to come as a smart card.

LG may be a latecomer in the market but aims high with such upgraded features such as IC chip and OTP that boast improved security when using financial services compared to existing mobile payments services. Its IC chip-based service also can be used at ATMs.

Industry watchers say LG Pay is expected to be adopted in the company’s next premium smartphone, possibly the V10 that comes out in the latter half of this year.

Mobile payments service is fast securing a firm footing in Korea. Samsung Pay has exceeded 1 trillion won (US$850 million) in transactions as of May, while the number of KakaoPay users has surpassed 10 million.

By Lee Ji-yoon (jylee@heraldcorp.com)


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