LG delays launch of LG Pay in favour of more G5 media

LGLG Electronics has announced it will delay plan to launch the LG Pay mobile payments system at this year’s Mobile World Congress (MWC) in Barcelona, The Korea Times reports, citing an unnamed company representative. The reports says that LG Pay, which was also supposed to debut at the event, may be delayed until Q2 of 2016.

“LG Electronics has delayed the official launch of LG Pay to the second quarter of this year to help the new LG flagship smartphone ― G5 ― receive more media attention”, an LG representative said. The representative said this decision was not taken amid lack of support from major credit card issuers in the company’s target markets such as the US and claimed that the LG G5 is their priority as LG “can’t afford to see another failure” in the smartphone segment amid challenging market situations as the failure of LG V10 to get traction.

LG Electronics has decided to use space at MWC that was allocated to LG’s telecom affiliate, LG Uplus, to promote the G5. “On the LG Uplus front, LG Electronics’ decision not to share space is unsatisfactory; however, we have to admit that LG Electronics feels a sense of urgency to lift its mobile business”, the representative added.

LG has been struggling with its mobile division as budget Chinese players continue to offer high feature smartphones at low prices, meaning that consumers are moving to brands like Xiaomi, Huawei, OnePlus and other budget brands. This move has has knocked LG out of the top five in 2015 when it came to smartphone shipments. The LG G5 has touted as a prime release for the company this year, but it will have to beat off competition from the Samsung Galaxy S7 and Apple iPhone 7 (supposedly released later this year).

LG’s strategy is in stark contrast to the strategy of Samsung, whose mobile payment platform Samsung Pay is expected to hit markets like the UK and Russia the same day as the Samsung Galaxy S7 launch at the MWC 2016.

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Categories: Mobile Payments

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