South Korea’s LG last year rolled out LG Pay, a mobile wallet that took an indirect approach to contactless payments by leveraging Bluetooth technology to link to a proprietary “white” card that stored a user’s payment cards. The concept never took off, and a new report suggests LG is making another run at mobile payments, using different technology.
Processing Content
For its next handset set to launch during the second quarter of 2017, LG is developing its own version of a technology leveraging the magnetic strip on payment cards, in addition to Near Field Communication, according to a report in ET News, a South Korea-based technology publication.
LG’s new handsets will include NFC, but they will also enable contactless payments at terminals that aren’t accepting NFC with an approach similar to Magnetic Secure Transmission (MST), a patented technology Samsung Pay uses, the report suggests. LG has found its own method and aims to avoid infringing on Samsung’s patents, according to the report.
An attendee uses his smartphone at the LG Electronics Inc. V10 smartphone launch event in Seoul, South Korea, on Thursday, Oct. 1, 2015. LG Electronics unveiled their new V10 smartphone today. Photographer: SeongJoon Cho/Bloomberg
SeongJoon Cho/Bloomberg
LG Mobile in November 2015 launched LG Pay with the support of card issuers Kookmin Card and Shinhan Card, but its approach required more steps for enrollment than other mobile wallets and it was a drain on the handset battery, various observers noted.
Domestic rival Samsung Pay launched in August 2015 and has since generated more than 2 trillion transactions, the company said.
Kate Fitzgerald is an Arizona-based senior editor for American Banker and longtime payments reporter. Fitzgerald began her journalism career at the... Read full bio
The preliminary readout from Starling Trust Sciences' report on the Silicon Valley Bank failure is an assessment of the conclusions from three previous government reviews of the episode.
The release of Fannie Mae and Freddie Mac's internal metrics support this process, but other measures will still be needed, according to Bank of America.
Payment experts say that in the wake of Walmart supporting more digital wallets, many banks are missing the boat with mobile wallets by not aiming to stay top-of-wallet and by ignoring operational issues.
A forthcoming rule from Treasury's Financial Crimes Enforcement Network will spell out banks' obligations to identify the true identities and beneficial ownership of its clients, even as the administration eliminated most U.S. beneficial ownership reporting.
The Federal Reserve's top regulator has the early returns from the report she commissioned on the 2023 bank failure and said it supports her call for new reporting practices among Fed supervisors.
