LG Uplus is planning to demonstrate blockchain service that pays foreign payments through phone bills. This demonstration will take place through a blockchain system CCPS designated for cellular carriers.
LG Uplus made announcement that it signed an agreement with SoftBank from Japan and Far EastTone from Taiwan to establish a blockchain-based foreign payment system CCPS, which is provided from TBCASoft.
LG Uplus, SoftBank, and Far EastTone are planning to provide pilot services to visitors of their respective countries that will allow them to pay payments that were paid at affiliated online and offline stores through DCB (Direct Carrier Billing). Customers will pay payments that were settled at foreign countries through following month’s phone bill.
Blockchain has excellent security as participants of transactions verify and encrypt data in real-time and store them into distributed ledgers in a form of a block.
SoftBank, Far EastTone, and TBCASoft are companies of CBSG (Carrier Blockchain Study Group). LG Uplus joined CBSG in February.
CCPS connects payment systems of cellular carriers through blockchain and allows members of each cellular carrier to use other cellular carrier’s payment system whenever they visit different countries.
Payments between cellular carriers are also calculated in real-time through blockchain. Ultimately, CCPS reduces final payments for foreign currencies and financial burden for cellular carriers.
“Blockchain-based simple payment system minimizes any loss that may occur from changes in exchange rate and saves fees from using credit cards in foreign countries.” said LG Uplus. “Because payments are paid following month, there is also advantage in deferred payments from credit cards.” After carrying out pilot service, LG Uplus is going to increase number of stores that provide its service and expand range of its service through discounts that are connected to its rate system.
“We are going to continue to look for various businesses based on blockchain technology with global cellular carriers.” said a representative for LG Uplus.
Staff Reporter Gil, Jaeshik | osolgil@etnews.com