LG has announced it will launch their own mobile payments service, making it the latest technology company to try the wallet-free payment solution.

LG made an announcement Thursday saying it will start preparing LG Pay. LG Pay would likely be the next way to use a smartphone as a wallet.

LG would join mobile payment services like Apple Pay, Google's Android Pay and Samsung Pay. The idea of using a smartphones to pay for things has been thought of for years, but Apple was the first company to introduce it late last year.

Companies believe mobile payments could help customers keep them loyal to the brand. If an Apple Pay user finds convenience and value in being able to pay for items with their phone that has their payment data stored in it, they are likely to keep using iPhones in the future.

LG is trying to remain competitive with rivals like Apple and Samsung. LG has created excellent smartphones like the LG G4, but is seeing sales figures decrease.

LG is partnering with Korea's two largest credit card firms, Shinhan Card and KB Kookmin Card, to start the launch of LG Pay. There have been very few details about how the service will work and when and where it will be available.

If LG Pay works the same way as Apple Pay or Samsung Pay, it would allow customers to pay for items at the cash register with their smartphones. If it is simply a service that allows LG phone owners to buy things online with their device, it would not be as valuable to customers and not in direct competition with its rivals.

Apple Pay works by using NFC technology and only certain credit card terminals have NFC. Samsung claims its Samsung Pay service can be utilized at older terminals. LG would have to decide what technology it will use.