Commercial settlement method
Value Added Networks
Value added Network is a unique payment service provider only in Korea. In English, it is sometimes referred to as "VAN company" only with the first letter of "value added network". Literally, it is a business that creates value through communication, and provides credit card payment information of merchants to card companies and receives some of the commission income as compensation.
There are about 24 businesses in Korea, and representative examples are KICC, NICE, and KSNET. Value-added telecommunication businesses are in charge of attracting credit card merchants and installing and managing payment terminals, and the payment methods serviced by the payment terminals are IC and MSR, mainly supplying payment terminals for credit card payments.
Therefore, it can be said that it is a past-type business operator who cannot provide information on the APP TO APP payment of My Payment.
Payment agency
A payment agency is a payment service provider that acts as an agent for online e-commerce payments. In English, it is sometimes called PG company only with the first letter of "payment gateway". As a payment service provider that literally opens the door to payment, it is a service provider that provides payment services through payment agents to telecommunication businesses that are difficult for credit card companies to join.
There are about 100 businesses in Korea, and representative examples are Inicis, LG U+, and Allet. The main task of payment agencies was to provide payment services to online telecommunication businesses through electronic payment agents, but they are growing by providing various and specialized payment services offline in the O2O market, which was formed with smartphones.
In the current credit card payment market, most of PG's payment services are based on credit card payment agents, but simple payment by platform companies, not credit cards, is changing to payment agents.
APP TO APP Payment by Platform Company
In this way, VAN and PG payments are used as credit card payments, and offline CAT (credit application terminal: credit card issuer's main computer is accessed online by credit card merchants to check the credit card usage limit or inquire whether the card is accident or invalid. Internet Secure Payment (ISP) and online is a VANLESS payment method provided by the platform, compared to the system programming Image Signal Processing Independent Study Project (ISP) for credit card payments.
It is a payment method that transfers legal currency (points) provided by platform companies from smartphones, which can be called convergence platforms, and representative examples are Kakao Pay, Naver Pay, and Alipay. This allows platform companies to easily make payments using their smartphones without a separate card. Therefore, it is sometimes called simple payment.
There are NFC, MST, and beacon as payment media, but QR scanning is the most common. The reason why the QR scan method has become common is that each smartphone has a camera, and the QR scan method does not discriminate between separate characteristics. Even in China, where APP TO APP payment is common, both Alipay and WeChat Pay adopt the QR scan payment method.
However, the QR scan method has many incidents caused by forgery and alteration of QR codes, and the rapid spread and success of APP TO APP simple payment systems should be introduced in order to issue one-time QR codes to Android-based payment terminals instead of current QR kits.
Blockchain-based Virtual Asset Transfer Payment
Virtual assets can also be included in the legal currency (points) of APP TO APP payments provided by platform companies. If a payment platform is provided by converting to a legal currency (point) to a user with a virtual asset, the payment network established with APP TO APP payment becomes a commercial transaction ecosystem of virtual assets. In fact, virtual asset platform operators are emerging that provide APP TO APP payment services for virtual assets based on blockchain technology.
Bithumb, a representative Korean cryptocurrency exchange, is mentioned. Bithumb provides a service that allows merchants to pay by converting the transaction amount traded between P2P to Bithumb Cash on their own exchange. In other words, Bithumb Cash is understood as a concept of legal currency (point) such as Kakao Pay's Kakao Money.
However, Bithumb is not yet recognized as a payment business within the institutional sphere, and it is difficult to secure a payment franchise. For example, it is illegal to join more than 10 franchises that are not directly managed by Bithumb.
In this way, despite the excellent technology of the blockchain, there are many difficulties in establishing a commercial transaction settlement network of the blockchain due to legal restrictions on re-capitalization.
Therefore, most companies (foundations) that issued coins have no choice but to pay for goods in commercial transactions through P2P between individuals. This creates two major problems.
First, since it is not the current commercial settlement system in which sales of shoemaking transactions are automatically reported, merchants must voluntarily report, but there is no system for voluntary reporting. Therefore, coin's P2P transaction network has not been established in commercial settlement because it can be thought that it promotes omission of tax returns.
Second, a coin with fluctuating market prices should be recognized as a value equivalent to cash, and it is impossible for a merchant to accept payments with coins due to variability in coin prices even in the process of cashing them through the exchange.
But it is not negative. In the future, AOT Coin's consortium has established a payment system that provides all payments of VAN, PG, and APP TO APP listed above to current commercial payment providers to establish an APP TO APP payment network, and the legal currency (point) conversion platform of virtual assets provided by AOT electronic wallet has solved all problems.
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