Korean mobile carrier LG Uplus will provide blockchain-based overseas payment services to its subscribers via partnerships in Japan, Taiwan, and the United States. The service, based on the cross-carrier payment system (CCPS), is expected to go on trial early next year. Subscribers will be able to complete foreign purchase transactions using payment networks of carriers other than their own.
LG Uplus Marks a First for Korean Carriers
The blockchain-based payment service marks the first time that a Korean carrier is providing advanced blockchain solution to its customers. LG Uplus, the third largest mobile carrier service provider in Korea, will be using a cross-carrier blockchain platform, CCPS, to facilitate this new service. The company has signed a memorandum of understanding with Far EasTone Telecommunications of Taiwan and Softbank of Japan to kick-start the new service. The blockchain platform will be provided by TBCASoft, a US-based company.
Once activated, LG Uplus customers will be able to buy things at select retailers from Taiwan and Japan using their mobile phones. Subscribers of Far EasTone will also be able to enjoy the same facility while traveling in Japan and South Korea. It will use direct carrier billing for making payments, helping transactions to be both billed and paid in the users’ home country and home currency.
How Will the Service Be Useful?
Apart from doing shopping while traveling easily, the service will help in avoiding huge transaction fees for using an overseas credit card. CCPS will help in the prompt settlement of the dues and in reducing risks related to foreign exchange rate fluctuations.
SoftBank, TBCASoft and Far EasTone are also the founding members of the global blockchain consortium of mobile carrier companies called Carrier Blockchain Study Group (CBSG). The consortium, launched in 2017, seeks the joint development of an innovative blockchain platform that could be used by mobile carriers.
The Study Group also aims to provide services like secure global digital payments, clearing and settlements, IoT use, personal authentication, and others to the subscribers of the telecom members. All the services will be provided using blockchain technology. LG Uplus became a member of the group in February. Director of mobile service unit Joo Young-Joon commented on the initiative:
“Customers will have the benefit of an overseas payment system based on convenient, economical and secure blockchain technology. And in addition to the overseas payment solution, LG Uplus will continue to develop new business opportunities with CBSG blockchain and global telecom leaders.”
Cochairman of the CBSG Consortium and founder and CEO of TBCASoft, Ling Wu, for his part said:
“As the CBSG Consortium grows faster than expected, we are entering a new stage of launching real-world trials that demonstrate the commercial readiness of the TBCASoft blockchain platform.”