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| 서울 여의도 LG 사옥 (사진= 연합뉴스) |
[Alpha Biz=(Chicago) Reporter Paul Lee] LG Pay, which was once ambitiously launched in the dream of becoming the "Big Three," will take steps to leave in six years.
This is because Apple Pay has lost ground amid fierce "Pay War" such as the landing of Apple Pay in the domestic market and the linkage between Samsung and Naver Pay.
According to the industry on the 1st, LG Electronics is planning to terminate the LG Pay simple payment service. It is said that the service will be terminated on June 30, the end of the first half. However, LG Pay application itself will be maintained for the time being.
LG Pay was first introduced in June 2017, when the domestic simple payment boom took place. It is a magnetic transmission method similar to Samsung Pay. In order to avoid patent disputes with Samsung, LG Electronics signed a contract with global payment solution company Dynamics and introduced technology separately. LG Pay has gone beyond the domestic market and has been promoting overseas expansion since 2019, starting with the United States.
However, as LG Electronics decided to withdraw its smartphone business in 2021, LG Pay naturally lost its growth engine. In the US market, LG Pay service was terminated in the same year when the smartphone business was withdrawn.
LG Electronics initially announced that it would maintain the Pay business until July 2024 and review the situation afterwards when the mobile phone business was withdrawn. However, as the core business, simple payment, was terminated early, the service was actually terminated earlier.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
