iM Financial Completes Blockchain Prepaid Payment Proof of Concept

Jointly developed with startup Buchigo

iM Financial Group said on April 20 that it had completed a proof of concept for a blockchain-based prepaid payment service. The service was jointly developed with Buchigo, a startup housed at iM Bank’s fintech incubator, Pium Lab.

The service is built around prepaid balances linked to verified-name accounts at iM Bank, with payments made by scanning QR codes. It uses a blockchain-based distributed ledger for settlement, which the company said can lower payment fees while enabling near real-time settlement. An iM Bank official said merchants can ease both fee burdens and cash-flow pressures, adding that small business owners sensitive to cash flow would see tangible benefits.

iM Financial said it plans to build blockchain-based prepaid payment infrastructure across South Korea to raise iM Bank’s digital competitiveness to a level comparable with major nationwide commercial banks. It also plans to expand business partnerships with promising fintech companies through Pium Lab.

Chairman Hwang Byung-woo said developing blockchain-based prepaid payment technology was a preemptive step in preparation for the institutionalization of tokenized securities and stablecoins. He also said the group would develop Pium Lab into an innovation platform that grows alongside promising startups.

Kim Jin-seong, Hankyung.com reporter, jskim1028@hankyung.com