LG Electronics scrapped the launch of its anticipated LG Pay service at next week’s Mobile World Congress, because it could distract attention from G5, its new flagship smartphone.
Holding back the payment service will focus more media attention on G5, said an LG source quoted by Korea Times.
The G5 is an important device for a vendor which had a loss-making 2015 and is focused on making a return to profitability. Annual smartphone shipments were up on 2015, although only slightly. However shipments in the crucial fourth quarter were down on the previous year.
LG Pay, which is an attempt to match rivals such as Apple and Samsung, will now launch in Q2.
A source denied the decision to pull the payments launch was made because of poor support for the service from major credit card issuers in target markets such as the US.
LG has already signed up two domestic credit card firms, Shinhan Card and KB Kookmin Card, in South Korea, but signing up partners internationally is a harder task.
Apple and Samsung both found negotiating with card issuers is a lengthy process. Their payment services are still only available in a handful of countries.
LG is holding its launch event for the G5, which is being teased with the “Play” moniker, on 21 February in Barcelona.
The device, which will have a 5.3-inch LCD display supplied by LG Display, is the first under mobile chief, Cho Juno, who is also a de facto CEO of LG Electronics.