Ripple Joined by LG for Cross-border Remmittance
The mobile wing of LG, LG U+, is now working on providing state of the art cross-border payments solution like Ripple (XRP), Stellar (XLM) and Swift have been doing.
According to an article by The Korea Times, the Korean mobile carrier said on Sunday that it has joined hands with global partners in the United States, Taiwan, and Japan to offer its subscribers an overseas payment service that is based on the blockchain technology.
The trial service would be starting the next year and is expected to employ the expertise of cross-carrier payment system (CCPS), which is a cross-carrier blockchain platform meant largely for the modern FinTech industry.
Once available, the benefits of the platform can be availed by the subscribers from other telecommunication carriers as well. They can also make cross-border purchases using the platform once rolled out.
This would be the first time that a Korean mobile carrier has offered a service of such an advanced level to its subscribers. The Seoul-based company signed a Memorandum of Understanding (MoU) with the Taiwan-based Far EasTone Telecommunications and the Japan-based SoftBank on Thursday for the new service.
The cutting-edge blockchain platform upon which the system would be built would be provided by the US-based TBCASoft.
Upon launching, LG U+ subscribers would be able to make purchases at selected retailers using just their mobile phones when traveling to Japan and Taiwan. Subscribers of Far EasTone, on the other hand, would e able to enjoy a similar convenience when they travel to Japan and Korea.
The service enables transactions to be paid and billed through the direct carrier billing which enables users to know how much they need to pay—and thereafter pay—in their home currency. It would also help users avoid fees on overseas credit card transactions. Moreover, CCPS provides a prompt settlement mechanism in cross-carrier services which reduces the risks associated with foreign exchange rates fluctuations.
SoftBank, TBCASoft, and Far EasTone are some of the founding members of the Carrier Blockchain Study Group (CBSG) which is a global blockchain consortium of telecom carriers. It was launched in September 2017 with the aim of enabling joint development of an innovative blockchain platform built specifically for telecom carriers.
The Director of the Mobile Service Unit at LG U+, Joo Young-joon 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.”
Ling Wu, founder, and CEO of TBCASoft, and co-chairman of the CBSG Consortium said:
“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.”
He said that this cross-carrier payment system is the first one in a series of blockchain-based systems. Later, he added that next on the list are authentication and identity.
“A number of pioneering banks and providers are using RippleNet’s global payments network to give workers an instant, affordable and transparent way to send needed cash to their families. One example is the collaboration between SBI Remit and Siam Commercial Bank (SCB) that leverages RippleNet to power real-time remittance payments for those Thai workers living in Japan.”
It also talked about the messenger API built for the product:
“RippleNet’s messenger API also enables SBI Remit and SCB to exchange information on customers, fees, rates, and expected delivery time for unprecedented visibility into a transaction. This allows workers and their families to know costs and final delivery amount and times before money is ever sent.”