Shinhan Card, Dunamu to Pilot Blockchain Payments Using Kiya Wallet in Card-Industry First

Shinhan Card said on Oct. 27 that it will launch an offline payment pilot with Dunamu using a blockchain-based digital wallet.

The pilot will use Kiya Chain, a public blockchain developed by Dunamu, and Kiya Wallet, its digital wallet. It marks the first time a South Korean card company has tested Kiya Wallet in a real-world payment environment.

The test will take place at a merchant on the first basement level of Shinhan Card's headquarters in Euljiro, central Seoul. It will be conducted for Shinhan Card employees, with payments made using tokens issued by Shinhan Card on Kiya Chain. Dunamu will support the blockchain network, while Shinhan Card will oversee token issuance and operations.

The payment process has also been simplified. Participating employees will receive tokens through the Kiya Wallet application and make payments by scanning a QR code installed at the store. That eliminates the need to enter a wallet address or transfer tokens separately, offering an experience similar to conventional mobile payments.

The companies will also conduct security checks. Using Kiya Chain's on-chain authentication technology, called Dojang, they will verify whether a payer is a Shinhan Card employee and grant transaction authority only to pre-registered wallets. The test is also intended to prevent unauthorized payments and review the security and compliance requirements needed for financial services.

Shinhan Card previously completed proof-of-concept work on six technology projects related to stablecoins and blockchain. It has since worked with overseas companies including the Solana Foundation and Japan's SBI Group to develop Web3-based payment technology.

The pilot will help set a new standard for blockchain-based financial services and lay the groundwork for immediate commercialization once legislation is completed, a Shinhan Card official said. The company also plans to gradually expand participating merchants and connect with global blockchain networks.