Blockchain firm TBCASoft announced an integration of its HIVEX cross border payment system with Japan’s largest payment app PayPay. This enables visitors from Taiwan to use their domestic mobile payment solutions to checkout using QR codes while visiting Japanese stores. TBCASoft positions HIVEX as a cross border solution for mobile payment service providers (MPSPs), which will go live in Q4 2023.
The collaboration in Taiwan is with three payment apps, JKOPAY, PXPay Plus, and E.SUN Bank, representing more than 12 million Taiwanese users. While South Koreans make up the largest number of visitors to Japan, Taiwan is number two.
PayPay claims to be Japan’s largest payment app, with more than 58 million users and 67% of transactions. It is a joint venture between Softbank and Z Holdings, which in turn is a joint venture with South Korea’s Naver. Both Naver and Softbank (Corp) invested in TBCASoft’s $25 million Series B in 2021.
Many payment apps tend to have a local focus, so HIVEX aims to expand the reach of these apps globally. Apps often use different QR code formats, and HIVEX allows the interoperability of these different systems.
“The launch of HIVEX marks a significant milestone for the mobile payment industry. By offering a secure, neutral, and interoperable payment network, TBCASoft empowers MPSP Members to expand their reach and provide enhanced services to their customers,” said Ling Wu, Founder and CEO of TBCASoft.
Meanwhile, one of the key benefits of blockchain is the ability to provide a shared ledger of transactions, thereby eliminating the need for reconciliations between different providers.
Looking at the potential for a solution such as this one, one can imagine people not just paying for their shopping while on holiday, but also using it for restaurants, entertainment and hotels while abroad. Although TBCASoft didn’t mention the potential for cross border e-commerce, that’s growing rapidly and predicted to see more phenomenal growth. For example, Juniper forecasts that volumes will double in the next five years.
TBCASoft is also the founder of the Carrier Blockchain Study Group, which brings together telecoms firms from around the world. One of its systems aims to enable people to use mobile wallets to pay for stuff abroad and settle with their domestic phone bill.