LG Uplus To Trial Cross-Carrier Blockchain Payment Platformbr>
LG Uplus, the cellular carrier subsidiary of South Korean electronics giant LG, is planning to offer a blockchain overseas payment service.
Dubbed the Cross-Carrier Payment System (CCPS), the project will see LG Uplus collaborate with Japan’s SoftBank, Taiwan’s Far EasTone, and US-based TBCASoft to enable global mobile payment services among global telecommunication carriers. All four companies are members of the Carrier Blockchain Study Group (CBSG), a global blockchain consortium of telecom carriers.
The CCPS platform will reportedly enable subscribers from one carrier to complete purchase transactions on the payment networks of another carrier. For example, LG Uplus mobile subscribers will be able to travel to Taiwan and Japan and purchase goods at selected retailers using their mobile phones. The platform will provide a prompt settlement mechanism in cross-carrier services that potentially reduces risk in foreign currency exchange.
The trial, scheduled to start in early 2019, will use 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.
Daichi Nozaki, Co-Chairman of the CBSG Consortium and VP, Head, Global Business Division at SoftBank Corp, said that while the number of mobile users accessing the Internet is high, usage of mobile payments is relatively low due to a lack of mobile payment infrastructure, services and security concerns.
“The upcoming trial will provide consumers and businesses with a trusted, distributed blockchain platform to overcome those barriers,” Nozaki said. “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.”
Youngjoon Joo, Mobile Service Unit Director of LG Uplus, said that customers will have the benefit of an overseas payment system based on convenient, economical and secure blockchain technology.
“In addition to the overseas payment solution, LG Uplus will continue to develop new business opportunities with CBSG blockchain and global telecom leaders,” Joo said.