LG Uplus Corp., a South Korean cellular carrier owned by LG Corporation, is launching a blockchain-based overseas payment service. The company has signed a memorandum of understanding (MOU) with Taiwan-based Far EasTone Telecommunications Co., to develop the new service on a cross-carrier blockchain platform called CCPS (Cross-Carrier Payment System). Through the new service, subscribers from one carrier will be able to complete purchase transactions on the payment networks of another carrier. The blockchain platform is The U.S.-based TBCASoft is the blockchain partner for the service and Japan-based SoftBank Corp. is also participating in the trial. The first trial of the blockchain-based cross-carrier payment system is scheduled to start in early 2019.
With the new service, LG Uplus mobile subscribers, for example, that are part of the trial will be able to travel to Taiwan and Japan and purchase goods at selected retailers using their mobile phones. The trial uses direct carrier billing where transactions are conveniently billed and paid through their carrier in their home-currency and potentially avoiding credit card overseas transaction fees. In similar fashion, Far EasTone subscribers will be able to travel to South Korea and Japan and enjoy the same conveniences. CCPS provides a prompt settlement mechanism in cross-carrier services that potentially reduces risk in foreign currency exchange, and offers users a friendlier payment experience.
Mike Lee, Senior Advisor of Far EasTone said, “FET is glad to work with SoftBank and LG Uplus to develop wallet roaming services. We believe experiences gained from this collaboration can be applied to other additional services on blockchain as well, thus further expanding our consumer smart services portfolios.”
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Youngjoon Joo, Mobile Service Unit Director of LG Uplus said, “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.
Daichi Nozaki, Co-Chairman of the CBSG Consortium and VP, Head, Global Business Division, SoftBank Corp. said, “The number of mobile users accessing the internet is high; however, usage of mobile payments is relatively low. Research reveals that consumers, businesses and the economy can benefit a great deal from shifting to mobile payments. Consumers can save time and boost productivity, while businesses can reduce costs and increase sales. Progress has been hampered by a lack of mobile payment infrastructure, services and security concerns. The CBSG Consortium is committed to being a leader and disrupting the status quo in mobile and digital payments. The upcoming trial will provide consumers and businesses with a trusted, distributed blockchain platform to overcome those barriers. Leading carriers that want to create new services and extend them globally, beyond their established territories and markets, and in a way that is efficient and secure should look to join the CBSG Consortium.”
Ling Wu, Founder and CEO of TBCASoft and Co-Chairman of the CBSG Consortium 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. The Cross-Carrier Payment System is the first in a series of blockchain-based solutions. Identity and authentication are coming next – another area our Consortium Members are ideally situated to disrupt.”