Google Inc (NASDAQ:GOOG) inked a strategic alliance with LG Display Co Ltd. (ADR) (NYSE:LPL) in kicking off Android Pay. The latter is a simple payment service that comes with the latest version of Android namely Android M. However, it’s doubtful whether LG can make significant inroads into the simple payment service market monopolized by Apple Inc. (NASDAQ:AAPL) and Samsung.
Google is a late entrant in simple payment services with Apple and Samsung entering much earlier. However, Google is looking to expand its current market share leveraging its considerable presence in the mobile operating system market.
As per Industry sources, LG will release the latest Google Nexus phone only in October. According to the earlier reports Nexus phones manufactured by LG and the Chinese Huawei had screen sizes of 5″ and 5.7″ respectively. Google has earlier associated with HTC, Motorola Solutions Inc (NYSE:MSI), LG and Samsung for its proprietary brand of phones. The Nexus models operate on the original version of the Android operating system without modification by the handset makers. These phones are less expensive than producers’ branded version with identical specifications.
Industry watcher commented that the success of Android Pay would hinge on its capacity to conquer the advanced nation’s markets in North America and Europe. Google chose LG because of the former’s considerable presence in these markets. Along with its alliance with LG, Google has partnered with Huawei to produce the next Nexus phone. However, the latter is potent only in China.
Just like Apple Pay, Android Pay is solely operable with short-range wireless communication as well as Near Field Communication (NFC). The advantage of Samsung Pay is that it is operable with both Magnetic Secure Transmission as well as NFC. As a result, Samsung Pay is anticipated to have a lead over Android Pay. The MST technology is critical as it is operable with contemporary credit card devices. This results in its ability to be used in many more sales outlets compared with Apple Pay.
Sources: zdnet, businesskorea
