Digital asset-based fintech firm Suho IO said on July 7 it had completed the build-out and pilot of Tiko Pay, a PBM-based digital gift certificate platform carried out as part of a national blockchain demonstration project.

Suho IO said it worked with blockchain infrastructure company AvaCloud to build a digital gift certificate platform that manages the entire process on-chain, from issuance and use to settlement and redemption or disposal.

Tiko Pay, developed by Suho IO, applies the PBM (Purpose-Bound Money) concept proposed under the Monetary Authority of Singapore’s Project Orchid. It is designed for use limited to specific purposes, regions or time periods.

The company explained it designed a PBM gift certificate structure that cannot be resold through smart contracts to block fraudulent distribution at the source. It also said automatic settlement of merchant payments at the time of use could be expected to cut costs to 30 to 50 percent of existing settlement methods.

The platform infrastructure was built on an Avalanche Layer 1 blockchain using AvaCloud.

During the project, Suho IO piloted Tiko Pay with foreign tourists and partner merchants at test sites and affiliated stores in central Seoul shopping districts visited by many foreign tourists. It said the pilot processed more than 40,000 transactions and verified on site the stability of QR-based offline payments and an environment that allows foreign tourists to pay more easily and conveniently in domestic shopping districts.

A Suho IO official said, "Through this national blockchain demonstration project, we proved the feasibility and technical completeness of a PBM-based digital gift certificate platform." The official added, "Based on the verified technology and AvaCloud-based operational references, we plan to expand not only in Korea but also to overseas demonstrations in Malaysia, Japan and Vietnam, and into the public voucher sector."