Device maker LG confirmed in a Thursday post to its Facebook page that it will soon enter the mobile payment space.
According to the post, LG will work with two local South Korean banks – Shinhan Card and KB Kookmin Card – to launch LGPay. Details on a specific launch date or the possibility of an international launch of the product were not immediately available.
The confirmation follows speculation in October that the company was developing a mobile payment system after documents filed with the U.S. Patent and Trademark Office revealed LG’s request to patent a product called GPay.
Though specifics from LG are scant at this point, the patent filing specifies that the concept is listed for use with “electronic handheld units (and smartwatches) for the wireless receipt, storage and/or transmission of data.”
Even with just a South Korean launch, LG will face stiff competition from Samsung Pay, Apple Pay and Google’s Android Pay. Samsung Pay, with a combination of NFC and contactless magnetic stripe technology that allows for broader compatibility and acceptance, will prove to be a particular hurdle for LG.
In September, Samsung announced that Samsung Pay facilitated more than $30 million dollars in transactions in the first month following its launch in South Korea. Samsung said at the time that usage of the payment service had “surged” in the country, with about 10 percent of active Samsung Pay users utilizing the payment option daily.