One South Korean cellular carrier, named LG Uplus, which is owned by the fourth largest conglomerate of the nation, LG Corporation, launches a blockchain-based overseas payment service.
LG Uplus will offer users cheaper and faster payments when traveling internationally
As it has been announced on the 17th of September, 2018, the trial effort is going to see the company working with partners in Japan, Taiwan, as well as the U.S., to offer users of three mobile barriers, cheaper and faster payments when traveling internationally.
According to The Korea Times, the system is expected to launch early in 2019, and it is based on a platform that is blockchain cross-carrier payment system, provided by project partner, U.S.-based TBCASoft.
LG Uplus also signed a memorandum of understanding or MoU on Thursday last week, with two other carriers, the Taiwan-based Far EasTone Telecommunications, as well as Japan-based SoftBank, to work together on trial.
The purpose is to help users avoid costly international card transactions
The service is going to enable LG Uplus subscribers to make purchases at select retailers with the use of their mobile phones when they travel to Taiwan or Japan. Similarly to this, the users of Far EasTone and SoftBank are going to have the ability to show via phone-based payments when they travel in Korea and Japan.
The director of the mobile services at LG Uplus, named Joo Young-Joon, said that customers will also have the benefit of an overseas payment system which is based on convenient, as well as economical and secure blockchain technology.
Its purpose is to help users to avoid costly international card transactions, as well as speed up the process of payment, and the service also bills for transactions through the carriers to be paid in the home countries of the users and their national fiat currency via their mobile bills.
According to The Times, TBCASoft also mentioned that it reduces the risk which is connected with fluctuations in foreign exchange rates.
CBSG is aimed at the joint development of blockchain services
What is interesting is that the news comes less than a week after the SoftBank has announced that it had finished a blockchain proof-of-concept for peer-to-peer mobile payments all over different carriers.
SoftBank also said that the technology was developed in partnership with TBCASoft, and with Synchronoss, which is a Nasdaq-listed firm which delivered an SMS-replacement communications protocol called Rich Communication Service or RCS in Japan.
Further on, EasTone, SoftBank, as well as TBCASoft are founding some members of a blockchain consortium of mobile carriers, which is called the Carrier Blockchain Study Group or CBSG, which has the purpose of joint development of blockchain services, particularly for their industry.