South Korea's No. 2 tech giant LG Electronics Inc. said Thursday it has clinched agreements with local credit card firms in preparation for the launch of its own payment tool.

LG Electronics said it has agreed with Shinhan Card Co. and KB Kookmin Card Co. to join ties for its mobile payment system, dubbed LG Pay.

The company has not yet opened the launch date of the service.

LG said it will conduct various tests of the new payment system with the credit card companies.

LG's bigger local rival, Samsung Electronics Co., kicked off the Samsung Pay service at home on Aug. 20.

Samsung's payment tool supports magnetic secure transmission technology that works on traditional credit card machines.

Like rivals Apple Pay and Android Pay, it also supports near field communication that requires a separate transaction device.

LG declined to comment on the technologies behind the LG Pay service but added it aims to boast wider accessibility. (Yonhap)