- LG U+ to set up Blockchain-based international payment service.
- The service would enable LG U+ subscribers to purchase items with their mobile phones in either Japan or Taiwan with their local currencies.
The mobile carrier subsidiary of LG Corporation, LG U+, released an announcement on Sunday stating that it is set to offer Blockchain-based international payment service to users.
According to LG UPlus, the Blockchain-based oversea payment service would commence early 2019. LG U+ stated that the service would rely on a cross-carrier blockchain system known as “CCPS” – cross-carrier payment system. Being a cross-carrier system, it would make it possible for subscribers of one telecom carrier to carry out purchase transactions on the payment platforms of another carrier.
This advanced service would be the first of its kind amongst the Korean cellular carriers to subscribers. Last Thursday, the LG U+ based in Seoul signed a memorandum of understanding (MOU) with SoftBank – based in Japan and Far EasTone – a telecommunication company based in Taiwan – for the new Blockchain-based international payment service. TBCASoft, a tech firm based in the US would be responsible for providing the blockchain platform.
Once the payment service commences operations, it will allow LG U+ subscribers to make purchases from certain retailers with their mobile phones whenever they are in either Japan or Taiwan. The service would also enable Far EasTone subscribers to enjoy similar benefits when they are in Japan or Korea. The Blockchain-based international payment service will make use of direct carrier billing, hence, purchase transactions conducted by subscribers would be billed and paid via their carrier in their home-based currencies.
TBCASoft stated that this service would help subscribers not to pay transaction fees when carrying out transactions using international credit card. More so, CCPS would provide a quick settlement system in cross-carrier services, as well as reduce the risk that accompanies fluctuations in foreign exchange rates.
When announcing the prototype of the Blockchain-based international payment service last week, SoftBank explained that:
“A mobile customer based in Japan, for example, can travel to the USA and make a purchase in dollars via RCS.”
Carrier Blockchain Study Group (CBSG) was created in late 2017 to function as the global blockchain consortium of cellular carriers. TBCASoft, SoftBank and Far EasTone were among the first founding members. CBSG aims at aiding the joint development of an innovative blockchain platform specially created for cellular carriers. More so, the consortium sees to offer both members and their customers a number of services which include IoT applications, personal authentication, clearing and settlement, secured global digital payments, and other blockchain-based services.
LG U+, who is currently the 3rd largest telecom carrier in Korea, joined CBSG in February. LG U+’s director of mobile service unit, Joo Young-joon, stated that:
“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 U+ will continue to develop new business opportunities with CBSG blockchain and global telecom leaders.”
The CEO and founder of TBCASoft, Ling Wu who is also CBSG’s co-chairman stated:
“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.”
Wu added that the CCPS is just one of the many services that would be rolled out by the blockchain-based systems. He said identity and authentication are coming up next.
With this Blockchain-based international payment service, it is therefore practically impossible for subscribers’ fund account to be hacked.