LG Uplus to Trial Blockchain-based Payment for Overseas Transactions

The mobile carrier of LG Corporation, LG Uplus, has successfully concluded plans to commence the trial of its cross-carrier payment system (CCPS) for overseas travelers using the blockchain technology.

According to a report on Korea Times, the fourth largest conglomerate in South Korea has signed a memorandum of understanding (MoU) with Japan-based Softbank, United States-based TBCASoft, and Taiwan-based Far Eastone Telecommunications. The union will provide users that are traveling to specific locations with a payment system that is considered as “smooth, efficient, and reliable.”  

The project, based on Cross-Carrier Payment System (CCPS), is expected to kick-off its trial in early 2019, with the US Silicon Valley startup providing the blockchain platform for the project.

Fast, Robust, and Cost-Effective Payment System

The rationale behind the project is to enable users to avoid costly fees on overseas credit card transactions.

TBCASoft said that CCPS provides a quick settlement mechanism in cross-carrier services, and also reduces the risk associated with the daily fluctuations in foreign exchange rates.

Also, the move will enable South Korean LG Uplus users traveling to Japan and Taiwan, to make payment for the purchase of goods and services in selected stores using their mobile phones.
Similarly, the same advantage applies to Far EasTone and Softbank users, as they will be able to utilize the same service whenever they visit any of the listed countries.

“Customers will have the benefit of an overseas payment system based on convenient, economical and secure blockchain technology,” director of the mobile services at LG Uplus, Joo Young-Joon, said.

Young-Joon further went on to assure the public that the firm will continue to partner with telecommunication giants that will provide new business opportunities through the blockchain technology.

Meanwhile, the service bills for transactions will be paid in users’ home countries and their national fiat currency through their mobile bills.

More Blockchain-based Payments System

According to reports on Wednesday, Softbank had earlier announced the successful completion of its CCPS, which saw the company partner with TBCASoft and Synchronoss Technologies, Inc, a global leader and innovator of cloud, messaging, digital and IoT products;

The payment service completed last week is based on the Rich Communications Service (RCS) global messaging standard.

The mobile payments service Proof-of-Concept is designed to allow users to make payment for purchases through mobile or specific retail stores directly from their device.