A report from Business Korea claims that Google will be launching Android Pay in conjunction with a new Nexus handset from LG in October this year. 

Given that Android Pay one of the key areas of importance for Google with the release of Android M, the company wanted to go with an OEM whose handsets have traditionally done well in developed markets like Europe and the United States.

The industry watcher said, “The question of whether Android Pay would succeed in the simple payment service market would depend on its ability to dominate the advanced countries’ markets in Europe and North America… this is in part why Google chose LG, given the latter’s success in these markets.”

The report also reiterates what we have heard previously: Google teaming up with Huawei for a second Nexus handset. However, since Huawei dominates mainly in the Chinese market, the LG made Nexus phone will be leading the way in major developed smartphone markets.

Google has usually released a new Nexus handset in October so the time frame from Business Korea’s sources seems just about right. However, Google has already announced that it will be releasing Android M in September/Q3 this year, and new Android releases in the second half of the year have always been accompanied by a new Nexus device.

LG is rumored to be working on a Nexus handset with a 5-inch screen, while the Huawei made Nexus will have a 5.7-inch screen. It was only earlier today that a mysterious Huawei device with a fingerprint scanner located on its back leaked in a video.