Modetour Completes Stablecoin Payment Proof of Concept to Cut FX Hassles, Fees

Modetour said it has completed a proof-of-concept project for a stablecoin-based payment ecosystem with Vitoz, RingNet and Jeonbuk Bank.

The company said April 13 that the project tested whether stablecoin payments could be applied to its travel products in a live service environment.

The proof of concept focused on a cross-border payment model that would allow inbound tourists and foreign residents in South Korea, including workers and students, to buy travel products without complicated currency exchange procedures or high intermediary fees.

The project combined Modetour's travel product operations, Jeonbuk Bank's financial services tailored to foreign customers, and blockchain technology from RingNet and Vitoz.

Modetour tested the business case by linking the system to its travel products in a live service setting. Jeonbuk Bank cross-checked fund flows and financial stability across the stablecoin lifecycle. Vitoz and RingNet demonstrated the technical feasibility of the payment infrastructure using a hybrid blockchain and a Crypto Payment Gateway, or CPG, jointly developed by the two companies.

The project also implemented smart contract-based instant refunds and automated settlements for partners. Modetour said that could reduce intermediary fees in cross-border payments while improving settlement speed and efficiency, making the service more convenient for customers and partners.

Based on the results, Modetour plans to improve purchase convenience for foreign customers and accelerate upgrades to a digital payment environment spanning travel bookings, payments, refunds and partner settlements. The company said it aims to improve efficiency and accessibility across its travel services, beyond simply expanding payment options.

"This PoC confirmed the potential of a cross-border payment model that anyone can use regardless of nationality by combining Modetour's travel products with a stablecoin infrastructure whose technology and financial-sector-grade reliability have been verified," Woo Joon-yeol, president of Modetour, said. He added that the company would continue to roll out differentiated payment environments and travel services that improve customer convenience through broader cooperation with partners.

Shin Yong-hyun, Hankyung.com reporter yonghyun@hankyung.com