One of South Korea’s major cities is increasing its payments program by publishing digital gift certificates on the blockchain. Seongnam’s new offering will be accessible by a mobile app, with the city attempting to reach the elderly with the uncomplicated payments process. Seongnam city has associated with the KOMSCO (Korea Minting and Security Printing Corporation) on the project. The new gift certificates will be accessible to the residents through the Chak mobile app.

Nevertheless, unlike existing blockchain-based platforms in the city, the residents will make payments without the need for QR codes. The new payment system will be adequate for 45,000 merchants in the city, Korean newspaper Kyunghyang Shinmun. A third of these merchants will additionally be capable of accepting mobile payments utilizing the certificates.

The merchants can apply existing debit and credit card readers to process the payments. The resident will then have to enter a PIN given by the mobile app to perform the payment. With the new simplified payments system, the city hopes to attract the elderly and those who aren’t tech-savvy. The system will perform a vital role as the city works to promote contactless payments to stop the spread of the Covid-19 pandemic.

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Seongnam, which is in the Gyeonggi Province, has continued up to its status as a tech city, welcoming blockchain to power its payment system. The city has become Korea’s Silicon Valley, being home to some of the country’s largest tech companies, including KT, SK Telecom, and Kakao Group. Digital currencies have been performing a central role in Gyeonggi Province. The province has a local digital currency, the Gyeonggi Money, which is allowed in most local stores. Since the COVID-19 pandemic struck, the local government has been utilizing digital currency to help local businesses, with small businesses receiving a special discount if they accept currency payments.

Gyeonggi has also been utilizing the digital currency to administer relief payments during the pandemic. In South Korea, residents are allowed to a KRW100,000 ($83) relief payment from the government. With the Gyeonggi Money only being received in local stores, the government assures that all the relief payments are utilized within the province, promoting the local economy.