The mobile payment space is getting bigger and somewhat better with each new announcement in the field, with payment vendors in an arms race to secure customers using bank compatibility, wide availability and features. The latest onto this train seems to be LG, whose upcoming LG Pay system is getting a few more rumored features before its launch, which is suspected to happen alongside the launch of a rumored LG V10 sequel. LG Pay, which will be using a special card instead of just an app, is now rumored to sport a one-time password feature, alongside an IC chip on the card itself.
While details at this stage are extremely sparse, it's not hard to see how these features can enhance security, or how they could manifest in the LG Pay ecosystem. If the card is supposed to sync to a phone, a one-time password being issued would be a big help with identity verification, aimed at preventing just any random person from getting your phone and your LG Pay card and going to town. Since a one-time password could replace other security methods like codes and detail checks, it may also make setup a bit simpler when it comes time to pair the card to a phone and get it rolling.
The other new rumored feature is an IC chip on the card. In normal credit and debit cards, IC chips are appearing more and more often these days, meant to enhance security. An IC chip typically contains a running account balance tally and account history, on top of authentication details. While some transactions with these cards are pin-free and thus easier for fraudsters who swipe a card to perform, the card can be used to track them from store to store as they use it, and it's easier than ever for banks to keep liability for fraudulent purchases out of customers' hands. With the added security of an IC chip, the LG Pay card will, thanks to pairing up with your phone, be even more secure than the plastic that's currently in your wallet; easier to recover when stolen, easier to dispute charges from and easier for the bank, carrier or LG to remotely kill-switch if needed.