A well known commercial bank in South Korea is going to work with the Korea Expressway Corporation to implement blockchain in toll collection.
A South Korean commercial bank by name, KEB Hana Bank, had a discussion with the Korea Expressway Cooperation, which was employed to manage highways, to see how possible blockchain can be used for toll payments.
D Daily based in South Korea reported that things should kick off before January next year. The arrangement is such that a smartphone banking app from KEB Hana and Hana One Q will be used by drivers to pay toll fees and also get refunds when there is need for that.
The agreement between both parties to use blockchain as a solution for collecting toll fees was necessitated by the COVID-19 pandemic which emphasizes the need for social distancing. It is better than using credit cards or cash because they do not offer contactless transactions.
Improving payment solutions that require no contact
According to Kwang-Ho Lee who oversees the sales department of Korea Expressway Corporation, the company’s aim at the moment is to improve in providing contactless services:
“We will continue to expand customized non-face-to-face (contactless) services to the public by applying blockchain technology, which is part of the Korean version of the digital new deal policy to lead the global economy after the coronavirus.”
The probability that the partnership will succeed is high because it now has the support of the Ministry of Science and ICT and the Korea Internet and Security Agency. These were the same agencies that approved KEB Hana’s blockchain project last year.
In South Korea, blockchain industries and those relating to 4.0 technologies are expecting the government’s financial support of $48.2 billion as it promised for the year 2025. The country says its aim is to digitalize most sectors in a way that the post pandemic era may require.
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