- NHN KCP tests stablecoin payments with two-second Avalanche transaction approvals
- Payco pilot enables online purchases and offline blockchain retail payment settlements
- Avalanche partnership strengthens merchant encryption systems and South Korea digital payment expansion
South Korean payment processor NHN KCP has started testing stablecoin payments through a blockchain network developed with Avalanche infrastructure. The pilot reflects growing efforts among fintech firms to introduce faster blockchain-based payments into everyday commerce.
The company launched the proof of concept alongside Payco, a mobile payment platform competing with Naver Pay and Kakao Pay. Internal trials involving nearly 700 employees showed transactions reaching approval in roughly two seconds following QR code scans.
NHN KCP designed the pilot to make stablecoin payments function similarly to existing mobile payment systems. Consequently, users purchased and sold Payco gift certificates directly through the application using stablecoins. South Korea continues expanding its digital payment ecosystem as consumers reduce cash usage across retail transactions. Cash accounted for approximately 16% of payments during 2024, according to Statista data mentioned in the report.
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Payco Pilot Targets Real-Time Stablecoin Transactions
The pilot focused heavily on transaction speed and payment convenience. NHN KCP said the system allowed users to complete blockchain payments without learning complicated wallet processes or additional settlement procedures.
Moreover, the company introduced a merchant administration dashboard built specifically for stablecoin settlements. Merchants can monitor transaction records and settlement data in real time without blockchain expertise.
NHN KCP also plans to refine the payment platform using information gathered during the testing phase. Additionally, the company intends to share the pilot findings with financial institutions and large merchants interested in blockchain payment infrastructure.
Avalanche Partnership Supports Faster Merchant Settlements
The stablecoin initiative follows a memorandum of understanding signed last month between NHN KCP and Ava Labs. Both companies agreed to build a payment-focused layer 1 blockchain network powered by Avalanche technology. That network aims to support near real-time payment approvals and merchant settlements across digital commerce services. Besides improving speed, the infrastructure will integrate on-chain encryption technology protecting transaction details and settlement information.
NHN KCP currently processes payments for a significant portion of South Korean e-commerce businesses. Consequently, successful pilot results could accelerate stablecoin adoption within mainstream retail payment systems across the country. In conclusion, the latest trial highlights increasing competition among fintech companies building blockchain payment infrastructure. South Korea’s advanced digital payment environment may also support faster stablecoin commercialization than many larger global markets.
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