The mobile section of LG, LG Plus is currently working on providing a state of the art cross-border payments solution, similar to what crypto companies stellar and Ripple are doing. This is according to a report by The Korea Times.
Benefits of the platform
LG Plus which is one of South Korea’s mobile carriers is designing a cross-border payments system built on blockchain technology.
The company announced that it has partnered with some companies in Japan, Taiwan, and the U.S as they look to fast-track the development of the payment platform.
The company added that the trial service would kick off early next year.
They are set to recruit the expertise of cross-carrier payment system (CCPS), which is a cross-carrier blockchain platform designed for the current FinTech industry.
As soon as the platform has been completed, it will become available to subscribers from other telecom service providers as well.
Users can also make use of the platform to make cross-border purchases. This latest development is a huge one for South Korea as it would be the first time a company in the country is going to offer the feature.
LG Plus signed a MoU with the Taiwan-based Far EasTone Telecommunications and the Japan-based SoftBank on Thursday last week for the enrollment of this service.
The blockchain platform upon which the system would be built would be designed by US-based TBCASoft.
After the platform is launched, users would be allowed to make purchases at selected retailers using just their mobile phones. It is available to them when traveling to Japan and Taiwan also.
The service would be designed to enable transactions to be paid and billed through direct carrier billing.
Customers will be able to know exactly how much they need to pay in their local currency, and fees on overseas credit cards would not apply when using this platform.
CCPS which the platform would use provides a prompt settlement mechanism in cross-carrier services. This ultimately reduces the risks of fluctuations when dealing with foreign exchanges.
SoftBank, TBCASoft, and Far EasTone are part of the Carrier Blockchain Study Group (CBSG).
This is a global blockchain consortium of telecom carrier that was launched last year with the aim of promoting joint development of innovative blockchain platform built for telecom carriers.
The Director of the Mobile Service Unit at LG U+, Joo Young-Joon stated that their customers will be able to enjoy the benefit of an overseas payment system based on convenient, economical and secure blockchain technology.
He added that LG Plus is committed to working on developing new business opportunities with CBSG blockchain and global telecom leaders.
Exactly how this latest development would affect the cross-border payment journey of Ripple and stellar is still unclear, but LG has a strong reputation in the tech world and that will definitely be a plus for the company.