Paying for Meals with Tether... 'Dollar Coin' Card Lands

The Onslaught of Stablecoins - A Major Shift in the Korean Payment Market

Hong Kong-based Redotpay issues 'dollar-linked' virtual cards for $10

Use coins at Visa merchants... Apple Pay available domestically

On the 8th, after dining at a restaurant in Gangnam, Seoul, a Redotpay card, which allows stablecoin payments, was presented. The restaurant owner swiped the card without hesitation. The payment process was the same as with a regular credit card. After inserting the card into the POS machine and signing, a notification of '99 Tether' being charged appeared on the smartphone. It was approximately 130,000 won. Choi Yong, a 38-year-old office worker using the Redotpay card, said, "I used it instead when the travel card issued domestically didn't work during my visit to Bali late last year," adding, "It's convenient as it can also be used with Apple Pay both domestically and internationally."

According to the cryptocurrency industry on the 9th, the Hong Kong-based Redotpay, a stablecoin payment card linked 1:1 with the dollar, has landed in Korea. It is understood that it can be issued to Koreans and supports Apple Pay, raising concerns that it will shake up the domestic payment market.

Redotpay is a stablecoin-based debit card. Since it's not a credit card, issuance is not difficult. It requires customer identification (KYC) such as real name, date of birth, address, and ID. This is why it can be issued regardless of nationality. A virtual card usable on smartphones is issued immediately for $10. iPhone users can register it with Apple Pay for payments. A physical card costs $100 and takes about two weeks to issue. When payments are made with this card, stablecoins are deducted in real-time from the digital wallet.

This card is linked with global payment company Visa, allowing payments at Visa merchants both domestically and internationally. In particular, it is noted for its strength in Korea, where only Hyundai Card supports Apple Pay.

If stablecoin cards deeply penetrate the domestic payment market, it is expected to directly impact the entire domestic payment ecosystem, including card companies, simple payment companies, payment gateways (PG/VAN), and foreign currency payment startups. Kim Yong-beom, CEO of Hashed Open Research, said, "With stablecoin cards, you can hold and pay in dollars without additional costs like exchange fees," predicting "a major shift in both domestic and global payment markets."

Reporters: Jo Mi-hyun, Jang Hyun-joo, Kim Jin-sung mwise@hankyung.com