A New Convenient Payment System
Korea Minting, Security Printing & ID Card Operating Corp. (KOMSCO) will launch a blockchain-based mobile gift certificate service in 10 municipalities across the nation in the first half of 2020.
KOMSCO has already launched the service in four municipalities of Seosan, Seocheon, Jeongeup, and Gyeryong. It plans to provide the service in six more regions by June, including Asan of South Chungcheong Province next week.
The mobile gift certificate service is based on KOMSCO’s blockchain platform “Chak,” which was released in February 2019. To use the service, a user needs to purchase a mobile gift certificate, which is issued by the government of the municipality where he lives, through the smartphone app Chak. After purchasing goods at a store, he makes payment by simply scanning the store's QR code with his smartphone.
This system benefits shop owners as they do not have to pay fees to credit card companies. Consumers do not need to go to banks to buy paper gift certificates. Mobile certificates also allow local governments to save the costs for issuing or managing paper vouchers.
By using the Chak service, users who purchase regional gift certificates can purchase and use multiple regional gift certificates at the same time. As a result, it has become possible to purchase gift certificates of a certain municipality at a discounted price in advance.
In addition to purchasing general local gift certificates, the Chak system is used as a channel for local governments to pay welfare allowances. Allowances can be easily paid to youths, children, farmers and fishermen among others via the Chak application.