LG Electronics has launched its namesake mobile payment service in its home country, the company announced.

LG Pay will be available on the firm's latest flagship phone, the G6, in South Korea via a software upgrade. It will later be made available on LG's other phones.

The service works like a credit card and allows the smartphone to be used on magnetic readers, LG said.

LG Pay will support Shinhan, KB Kookmin, BC, and Lotte cards. All credit cards in South Korea will be supported by September.

It has fingerprint recognition and, as LG previously announced, has one-time-password security.

The company has been working on the mobile payment system since 2015.

It was expected to launch last year, possibly in a universal White Card format, but was again delayed.

It reportedly faced cancellation earlier this year after plans to launch it with the G6 were scrapped.

The mobile payment market is already saturated by Samsung Pay, Apple Pay, and Android Pay, among others.