South Korean Mobile Carrier Starts Blockchain Based Payments System

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As reported by Korea Times, South Korean mobile carrier LG UPLus owned by the nation’s fourth-biggest conglomerate LG Corp., is starting a blockchain based cross-carrier overseas payment services.

On 13th September, LG U Plus had signed a MoU to develop the new services besides three global partners: Japan’s SoftBank, U.S.- based TBCASoft, and Taiwan-based Far EasTone Telecommunications. Through the new facility, customers of one telecoms carrier will be able to frictionlessly complete transactions on the payment networks of another.

As per Korea Times, the initial trial of the LG UPlus associates blockchain-based cross-carrier payment system (CCPS) is slated for the start of 2019.

CCPS will reportedly use blockchain to allow a quick settlement mechanism in cross-carrier services. This will mean that customers can avoid fees on overseas credit card transactions, and are protected from the efforts of fluctuating foreign exchange rates as they are ultimately billed through their carrier in their home currency.

For instance, the service will enable LG UPlus subscribers to buy retail goods when utilizing their cell phones in Japan and Taiwan, while Far EasTone users from Taiwan will enjoy the same benefits in Japan and Korea.

Founder and CEO of TBCASoft Ling Wu told the Korea Times that the cross-carrier payment system is the first in a planned series of telecoms-specific blockchain solutions, noting that systems designed for “identity and authentication” are next.

SoftBank, TBCASoft, and Far EasTone are all among the founding members of the Carrier Blockchain Study Group (CBSG) a global blockchain consortium of telecom carrier that started in 2017. As reported earlier, CBSG has lately unveiled the creation of a new blockchain working group that will concentrate on global remittance services, as well as adding six further major global telecoms firms to its ranks.