South Korean fintech company Toss has completed a proof of concept (PoC) with Gwangju Bank to test stablecoin-based QR code payments at physical retail locations. The trial examined how bank customers could use stablecoins to pay merchants through an integrated payment process involving the Gwangju Bank and Toss applications.
The initiative aims to connect digital asset payments with existing banking and retail payment services. Under the tested model, customers can initiate a transaction through their bank’s app, complete the payment using Toss, and enable the merchant to receive funds as part of the same transaction.
The proof of concept demonstrated a payment structure designed to combine stablecoin transfers and merchant settlement into a single process, potentially eliminating the need for a separate settlement procedure after checkout.
The companies conducted the test in an environment separate from their commercial services. They are now preparing another round of verification that could involve actual merchants, moving the initiative closer to testing stablecoin payments in real-world retail settings.
How the integrated QR payment process works
The tested payment flow begins when a Gwangju Bank customer selects the stablecoin payment option within the bank’s mobile application. The Toss application then opens automatically, allowing the customer to proceed with the transaction by scanning a QR code at the store.
The arrangement assigns different roles to the two applications. Gwangju Bank provides the initial interface through which customers select the payment method, while Toss manages the payment process at the merchant’s location.
Once the transfer is completed, the payment amount is directed to the merchant without an additional intermediary settlement step. The system is designed to confirm both the payment and settlement at the time of the transaction.
This structure differs from payment arrangements in which a merchant receives confirmation at checkout but must wait for a subsequent settlement process before receiving the corresponding funds.
By combining payment processing and settlement, the model could simplify transaction handling for merchants and reduce the operational steps involved in receiving payments. However, the proof of concept focused on verifying the technical process rather than measuring its performance under actual commercial conditions.
The trial did not establish how the system would perform with high transaction volumes, multiple participating merchants, or live customer payments.
Initial test used virtual merchants and no real assets
Toss and Gwangju Bank conducted the verification using a simulated merchant rather than an operating retail business. The test environment was separate from the companies’ commercial services, and the process did not involve actual customer information or real financial assets.
The exercise was intended to establish whether the payment sequence and settlement mechanism operated as designed. It did not measure consumer adoption, transaction volumes, merchant demand, or the commercial viability of the proposed service.
The controlled setting allowed the companies to examine the interaction between their applications and verify the transaction flow without exposing real customers or funds to the experimental system.
The next phase is expected to focus on simplifying the customer payment experience and assessing the scope of testing at actual merchant locations.
Second verification phase could bring real-world testing
Following the initial results, the companies are preparing a second round of verification. Their plans include reducing the number of steps customers must complete during payment and discussing the requirements for conducting tests with real merchants.
Moving to physical retail locations would allow the companies to evaluate the payment experience in a more realistic environment. Such testing could help identify operational issues that may not emerge in a simulated setting, including merchant integration requirements and the practical usability of QR code payments.
The next phase would also provide an opportunity to examine how the proposed arrangement fits into existing retail payment operations. Details about participating merchants, the timing of the next trial, supported stablecoins, and any potential commercial launch have not been disclosed.
The initiative reflects ongoing efforts to connect digital assets with established financial services and everyday payment experiences. By integrating bank applications, QR code technology, and stablecoin settlement, Toss and Gwangju Bank are exploring whether digital currency transactions can become more accessible at physical stores.
Any broader rollout will depend on the outcome of further testing, operational readiness, and applicable regulatory requirements. For now, the completed proof of concept establishes a technical foundation for evaluating the model beyond a controlled environment.
