By
Mayowa Adebajo
March 12th, 2024
The new blockchain-based overseas payment service will enable customers avoid overseas credit card transactions fees and reduce foreign exchange risks, as payments will go through their mobile account.
South Korean Giant LG Uplus and Taiwan-based Telecommunications company Far EasTone have announced their collaboration aimed at providing a new overseas payment service to their customers. Last Thursday LG Uplus signed a memorandum of understanding with Far EasTone and SoftBank, with TBCASoft providing the blockchain platform.
As LG Uplus said on Sunday, the project called ‘Cross-Carrier Payment System’ (CCPS) sees the LG mobile carrier arm collaborate with partners in Japan, Taiwan and the United States to enable global mobile payment services among global telecommunication carriers.
According to the announcement, LG Uplus subscribers will be able to travel to Taiwan and Japan and purchase goods at selected retailers using their mobile phones. Likewise, Taiwanese subscribers of the Far EastTone service can do the same when visiting Korea and Japan.
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. Using the CCPS system, customers can avoid overseas credit card transactions fees and reduce foreign exchange risks. Payments will go through their mobile account. And for the telecom companies, because the blockchain is a single shared ledger, there are no reconciliation issues between the companies.J
oo Young-joon, LG Uplus director of mobile service, 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.”
According to TBCASoft’s founder and CEO, Ling Wu, the cross-carrier payment system is the first in a series of blockchain-based systems, with identity and authentication are coming soon. The service is set for trial in early 2019.
Daichi Nozaki, SoftBank VP and Co-Chairman of the CBSG Consortium, 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.”
He added:
“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.”
Ling Wu, Founder and CEO of TBCASoft and Co-Chairman of the CBSG Consortium, commented:
“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.”
TBCASoft, SoftBank and Far EasTone are also founding members of the Carrier Blockchain Study Group (CBSG) consortium, a global working group of telecom carriers launched in September 2017. Recently, Softbank announced that it had completed a blockchain proof-of-concept for peer-to-peer mobile payments across different carriers.