LG Pay Headed to United States
LG Electronics said it plans to launch LG Pay in the United States during the first half of 2018, according to Yonhap News Agency.
The mobile payment system, which will be released as LG Wallet in America, will work like Apple Pay or any other similar service. To pay for a goods, you will tap your phone at eligible payment terminals and follow the instructions on your mobile device to complete the transaction. With Apple Pay, you just need to tap your phone and use your fingerprint or FaceID to approve the payment.
Mobile payments are more secure than traditional credit card payments, but will LG owners use LG Wallet? Inititally at least, adoption will likely be low.
First, there are relatively few LG owners in the United States compared to the more popular iPhone, and few iPhone users have adopted mobile payments. In 2017, there were 32 million LG smartphone owners in America compared to over 90 million iPhone owners. According to PYMNTS.com, only about 25% of Apple users have tried mobile payments. For those who have not tried Apple Pay, 37% said they were satisfied with their current payment method, and 31% said they were not sure how it worked.
With this low Apple Pay adoption rate, it does not appear LG Wallet will see massive market penetration immediately. Until mobile payments become accepted everywhere in the United States, it seems as if most people will continue to use their familiar credit cards. In addition, it is unlikely retailers will pay to update their point-of-sale systems if consumers are not clamoring for the option.