In a foreseeable future, smart devices will likely replace wallets, as more and more companies have been laboriously developing and fervently pushing their mobile payment services, such as the upcoming LG Pay as well as Apple Pay and Samsung Pay. When they will take over wallets depends on what they can bring to the table, though.
With mobile wallets, convenience is definitely at a tap of a digital button, where customers will no longer need to dig around their bags or pockets for their wallets just to get their credit or debit card to pay. A huge potential market is at hand from this perspective, and LG, Apple and Samsung want a piece of the action, but which one can offer the best solution?
On an interesting note, LG is just about to join the competition. The company recently signed partnership agreements with KB Kookmin Card and Shinhan Card, both South Korean-based credit card companies. With that said, LG Pay will initially be available only in South Korea when it rolls out.
Meanwhile, both Apple Pay and Samsung Pay support only their latest devices. Whereas the Cupertino brand has the iPhone 6, the iPhone 6 Plus and the Apple Watch in its lineup, the South Korean brand has the Galaxy S6, the Galaxy S6 edge, the Galaxy S6 edge+ and the Galaxy Note 5 in its roster. Seeing as their flagships have been selling like hotcakes, kicking off their mobile wallets didn't run into much of an issue. But Apple may have gained the edge here, as the Apple Watch opens the Apple Pay service to more consumers because the mobile wallet will work when the wearable tech is paired with the iPhone 5, iPhone 5c and the iPhone 5s.
On the other hand, LG Pay could possibly support all its devices. While information about LG's mobile wallet is currently scarce, rumors say that it will use a special card. Sounds pretty much like a credit or debit card, right? Given that the point of having a mobile wallet is to eliminate the need for cards, this seems like a step backward. However, what the company has in mind is a special card that can connect to an LG handset, where credit, debit, gift and loyalty cards are combined into one device. Assuming that Bluetooth is used for connectivity, it'll work with virtually any LG device.
Next, let's tackle how the mobile wallets are used. Apple Pay and Samsung Pay can both be used via a tap-to-pay method with NFC at supported terminals. The latter, however, gains the upper hand in this department for its magnetic-stripe reader support using LoopPay's magnetic secure transmission (MST) technology. Meanwhile, LG hasn't released any information about its payment system yet, but the company suggests it will deliver a reliable experience.
"The LG Pay mobile payment service will provide a consumer-oriented and general-purpose payment experience from the existing mobile payment systems," Kim Duk-soo, KB Kookmin Card's CEO and president, says.
Now, let's see the figures of the accepted locations, which is one of the most important aspects next to security. Apple Pay is accepted at 700,000 locations, including notable retailers such as Walgreens and Whole Foods, but Samsung Pay takes the lead with more than 30 million supported locations. In LG's case, the company is planning on making its LG Pay acceptable almost anywhere with its "strategic collaboration with key partners," according to Cho Juno, chief of the mobile division at LG.
The competition is still fresh, but it seems that Samsung Pay is at the top of the current proverbial food chain. However, with things this early, it's safe to think that Apple Pay or LG Pay might potentially surpass Samsung, where the latter will have to fill quite a tall order before it can do so.
