Toss, the financial services platform operated by Viva Republica, has completed a blockchain-based public payment infrastructure proof of concept with the Korea Minting and Security Printing Corporation, testing how digital currency could be incorporated into real-world payment and settlement systems.
Viva Republica announced the completion of the project on Sept. 18, following a strategic memorandum of understanding signed by the two organizations in April. The initiative examined whether blockchain-based digital currency could function as an additional payment and settlement method while remaining connected to existing public payment infrastructure.
The proof of concept established an end-to-end payment structure in which users could convert blockchain-based digital currency into gift certificate tokens, use those tokens for payments, and complete merchant settlement through a connected system.
The organizations created a test environment for local gift certificates that was isolated from actual commercial services. Within that environment, the project simulated the full transaction cycle, beginning with users topping up gift certificate tokens using blockchain-based digital currency and continuing through payment processing and settlement to merchants.
The approach was designed to examine how blockchain technology could operate alongside established payment infrastructure rather than requiring the existing system to be completely replaced.
Optimism used as blockchain infrastructure
The blockchain infrastructure for the project was built using Optimism, an Ethereum layer-2 ecosystem. Layer-2 networks are designed to process transactions more efficiently by handling activity away from the Ethereum main network and subsequently recording transaction results on Ethereum.
Toss also verified a mechanism connecting blockchain-based digital currency transfer records with transaction information maintained within the existing payment infrastructure. This was intended to demonstrate how blockchain transaction data could be integrated into established payment processes.
Privacy was another focus of the project. Because public blockchains can potentially expose transaction-related information, the organizations tested a privacy feature known as Privacy Boost. The technology was applied to reduce the possibility that sensitive payment information could be externally exposed while transactions were processed through the blockchain infrastructure.
Merchant settlement and payment processing tested
The proof of concept also incorporated payment processing and merchant settlement into a unified transaction flow. Merchants were given the ability to transfer settled funds according to their preferred timing, rather than relying solely on a fixed settlement schedule.
The tested structure could, if introduced into live services, help reduce processing times and lower costs associated with conventional payment and merchant settlement operations.
The project remains a proof of concept rather than a live public payment service. Its results nevertheless provide a technical basis for examining how blockchain-based digital currencies could be connected to public payment infrastructure while retaining existing systems and addressing privacy requirements.
A Toss representative said the company viewed stability and personal information protection as key requirements because public payment infrastructure supports services used in everyday transactions. The company also indicated that it would continue testing payment and settlement infrastructure aimed at reducing operational burdens for small-business owners.
Toss also expands holiday support for small merchants
Separately, Toss is providing full subsidies for Toss Pay payment fees charged to small online merchants during the Sept. 21-27 Chuseok holiday period.
The program applies to eligible payments made with Toss Pay Money or linked bank accounts at small online merchants. Merchants do not need to submit a separate application because the support is applied automatically. Fees incurred during the promotional period are scheduled to be refunded in early October.
The company said the initiative represents its second holiday fee-support program for small merchants, following a similar effort during the Lunar New Year.
The blockchain proof of concept and the merchant fee program address different areas of Toss’s payment business. While the fee support provides near-term assistance to small online businesses, the blockchain initiative explores longer-term infrastructure that could connect digital currencies with established payment and settlement systems.
For users, merchants, and payment-system operators, the project indicates a potential model for combining blockchain-based digital currency transfers with existing payment infrastructure while placing transaction privacy and settlement flexibility at the center of the design.