NHN KCP unveiled a model with Avalanche using stablecoins for payments, on-chain settlement and cross-border remittances. It implemented a structure that reflects payment information in about 1 second and automatically transfers settlement funds hourly, and is reviewing the possibility of linking it with existing payment agency and settlement infrastructure.

NHN KCP said on July 24 it held a joint demo day with Avalanche at its headquarters in Guro-gu, Seoul on July 23 and demonstrated a stablecoin-based payment and settlement service.

At the event, the companies demonstrated four functions: stablecoin payments in about 1 second, a merchant admin page, hourly on-chain automatic settlement and blockchain-based cross-border remittances.

Attendees received stablecoins through the PAYCO app’s digital wallet, paid for goods on site and checked how transaction results and settlement status were reflected on the admin page.

On-site payments were implemented using QR codes and barcodes without a dedicated terminal. Using an Avalanche-based payment-specialised mainnet built by NHN KCP, the system recorded transaction information on the mainnet in about 0.5 seconds and reflected it on the PAYCO digital wallet in about 1 second.

The merchant admin page allowed real-time checks of order acceptance, whether payment was completed, transaction status, expected settlement amounts and processing details. It was designed so merchants can manage sales and settlement status in a way similar to existing card payments without specialised blockchain knowledge.

NHN KCP also unveiled an hourly on-chain settlement process that automatically transfers settlement funds from a settlement wallet to a merchant wallet by linking stablecoin payment and settlement data.

In the remittance demonstration, it implemented the movement of funds between an external stablecoin wallet and the PAYCO digital wallet. Unlike existing cross-border remittances, it presented the possibility of simplifying remittance procedures by sending funds between wallets through a blockchain network.

The companies plan to review ways to expand the business scope to cross-border remittances and global payment and settlement services by reflecting country-by-country financial regulations and requirements for anti-money laundering (AML) and know-your-customer (KYC).

NHN KCP plans to flesh out its stablecoin business focusing on links with existing payment gateway (PG) and settlement infrastructure, business-to-business (B2B) supply of the digital wallet, admin page and payment-specialised mainnet, and blockchain-based cross-border remittances.

An NHN KCP official said the competitiveness of payment infrastructure is determined not only by approval speed but also by settlement speed and operational visibility. The official said a merchant’s operational efficiency and cash turnover can vary depending on how quickly and stably funds are settled after sales occur.

The official added that it will advance a payment and settlement model that merchants and financial companies can use together.