CEO Kim Hyung-woo: "The Future of Money Where Cash and Coins Disappear Is an Opportunity for Us"

Zoom In - Kim Hyung-woo, CEO of Travel Wallet, Announces the 'Second Founding'

The Red Ocean of the Travel Card Market

Responding with Instant Issuance at Convenience Stores and More

"Everyday Spending on Meals and Drinks

Will Be Transformed by Stablecoins"

The 'rule of travel' that you must prepare plenty of local cash before going abroad has been breaking in recent years. This is thanks to the prepaid foreign currency recharge card first introduced by the fintech startup Travel Wallet. The travel card market has become a red ocean, drawing in large financial companies as well. Travel Wallet is now preparing a 'second founding' in anticipation of the stablecoin era.

On the 20th, Kim Hyung-woo, CEO of Travel Wallet, predicted, "There is a high possibility that stablecoins will change the very foundation of the financial system," adding, "The remittance and payment networks based on bank accounts, which underpin our society, will be greatly disrupted." Kim plans to develop a 'digital wallet'—a convenient way to both store coins not based on bank accounts and make payments. He said, "Enabling fee-free and convenient payments overseas is what we do best," and added, "We are considering ways to link with the Visa payment network so coins can be used easily in daily life and during travel."

Abroad, global payment companies such as Visa, Mastercard, and PayPal are racing to adopt stablecoins. In Korea, there is still a long way to go before stablecoins can be used for paying for meals or coffee. The relevant laws, such as the Electronic Financial Transactions Act, have yet to be revised, and even a won-based stablecoin has not taken its first steps. Nevertheless, Kim is firmly convinced that this is 'an inevitable future.'

He graduated from Korea University's Department of Economics and worked as a foreign exchange management expert at Samsung Asset Management and the International Finance Center before founding Travel Wallet in 2017 to solve inefficiencies in overseas payments. The prepaid card with no transaction fees has changed the way travelers exchange currency. Kim explained, "The service started from the troublesome memory of figuring out what to do with leftover foreign bills and coins after a trip," adding, "It became popular because leftover digital funds could be instantly converted to the next destination's currency."

Although the pioneer's advantage faded as banks entered the market, Travel Wallet continued to enhance its competitiveness in other ways. Inconveniences experienced by Kim and the team while traveling and customer complaints were reflected in technology development. A prime example is the 'instant card issuance service at convenience stores,' launched for the first time before last year's summer vacation season. Customers can request a card through the mobile app, select a GS25 convenience store for pickup, and receive a physical card in just about 2 minutes. This service was inspired by the fact that over half of customer complaints related to the question, 'When will my card arrive?' The relevant technology is now patented.

Kim said, "It took painstaking effort to develop and commercialize the instant issuance technology." Recently, services for solo travelers have also been introduced, such as the 'Social' community for finding travel companions via the mobile app, or 'N-part payment', allowing friends to split travel expenses. Kim, who frequently travels abroad, came up with these ideas because he often found himself eating alone while on business trips.

He repeatedly emphasized, "A tech company is like holding ice in your hands." Like ice melting if you just stay still, Kim believes that failing to pursue the next opportunity immediately after success will lead to obsolescence. He said, "We are preparing for a world where cash and coins are taken out of wallets and money moves even without a bank account."

Jong-pil Park, jp@hankyung.com