- LG’s mobile wing is reportedly working with Ripple Labs
- LG signed ‘Memorandum of Understanding’ with SoftBank and Far EasTone Telecommuncations
- The trial will start in 2018
Korean manufacturer LG has joined hands with American fintech Ripple to build a state of the art cross-border payments solution, according to a report by The Korea Times. The trial will reportedly start by 2018. Working with other global partners from Taiwan and Japan, LG and Ripple will offer LG subscribers a blockchain-based payment service that will make cross-carrier payments possible. LG representatives say that the technology will also make cross-border purchases possible once it has been rolled out. It is the first time that such a service has been introduced in Korea, according to observers and it is expected to set the bar in Korea’s digital payments ecosystem.
LG, a company based in the Korean capital Seoul, signed a Memorandum of Understanding with Japan’s SoftBank and Taiwan’s Far EasTone Telecommunications. The system’s platform will be provided by TBCASoft, based on a statement released by LG. LG U+ subscribers will be able to pay for purchases through their mobile phones when visiting Taiwan or Japan. Far EasTone subscribers will be able to do the same when they go to Korea or Japan. The amount that subscribers will pay for their purchases will be included in their carrier bill in the currency they use at home. Apart from avoiding credit card fees for transactions overseas, users are also protected from currency exchange fluctuations thanks to the platform’s prompt settlement mechanism.
While the platform does not support direct international money transfers, LG U+ executive Joo Young-joon said that the consortium will “develop new business opportunities”. The 2018 trial will “demonstrate the commercial readiness of the TBCASoft blockchain platform”, according to the company’s CEO Ling Wu.
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