Toss Payments, the payment gateway affiliate of Viva Republica, will take part in a private pilot project that links deposit tokens to existing payment networks. It plans to build infrastructure that supports deposit token payments without merchants replacing terminals or developing separate systems.

Toss Payments said on Thursday it was selected as the preferred bidder for the "deposit token-based payment infrastructure expansion project" under the "Blockchain Innovation Leading Project" promoted by the Ministry of Science and ICT and the Korea Internet & Security Agency.

The project is a government-led pilot aimed at easing small business owners' burden of payment fees. Under cooperation between the Ministry of Finance and Economy and the Bank of Korea, it is overseen by the Korea Financial Telecommunications and Clearings Institute and will be carried out as a private consortium involving 9 banks, 8 electronic payment agencies and 2 large-demand users.

A key goal is to expand into the private payment environment the experience from deposit token pilots based on a wholesale central bank digital currency verified in the Bank of Korea's "Project Hangang".

In the project, Toss Payments will be responsible for connecting deposit tokens to existing merchant payment networks. The system is designed so merchants can accept deposit token payments through existing payment infrastructure without replacing terminals or developing separate systems.

If deposit token payments are applied in real payment settings, they are expected to lower merchants' payment fees and shorten settlement periods.

Min-woo Lee (이민우), an executive director at Toss Payments, said, "New payment technology takes hold when merchants do not have to change anything." He added, "We will focus on building a payment environment where merchants can accept deposit tokens without 부담."