As Coupang teamed up with Woori Bank to test won stablecoin technology, the retail industry is growing more interested in how to use it. Large retail platforms like Coupang view stablecoins not as mere virtual assets but as tools that can overhaul payment and settlement structures. Observers say Coupang, which expanded rapidly with its Rocket Delivery, is also moving to strengthen its payment infrastructure competitiveness.
On the 1st, according to related industries, Coupang recently signed a business agreement with Woori Bank for cooperation on payment technology based on a won stablecoin. The two companies verified, in an environment identical to an actual service, the necessary technologies such as payments, remittances, merchant settlements, and conversion between won and stablecoins using a won stablecoin.
A stablecoin is a virtual asset designed to be pegged 1-to-1 to legal tender such as the won or the dollar. Unlike bitcoin, which has high price volatility, it aims to minimize value fluctuations so it can be used for payments, remittances, and settlements. For the won stablecoin market to take hold, observers say it is more important where it can actually be used than who issues it. Large retail platforms like Coupang, which have many transaction volumes in shopping and food delivery, are cited as key use cases.
Retail platforms are focusing on stablecoins because they can improve payment and settlement systems. In current e-commerce, the amount a consumer pays is passed through card companies, payment gateways (PG), and banks before it is paid to the seller. In this process, payment fees and settlement expenses arise, and it usually takes several days before the seller actually receives the funds.
Using stablecoins can simplify this structure. When payments and settlements are performed on a Blockchain, it can reduce intermediate steps, speed up settlement, and lower fee burdens. As settlement periods shorten, sellers can get paid faster, and from the platform's standpoint, it can cut financial expense incurred during settlement.
The cooperation between Coupang and Woori Bank also focused on improving the settlement structure. The two companies implemented a process in which order payments from Coupang's delivery platform, Coupang Eats, are settled in real time to franchise owners through a stablecoin, and verified whether this could shorten sellers' settlement periods.
◇ In the delivery industry, settlement speed is already a competitive edge
In the delivery and e-commerce industries, there are already many cases of touting settlement speed as a competitive edge. The delivery platform "Ddangyo," operated by Shinhan Bank, provides same-day settlement services for onboarded store owners. It is a strategy to reduce the financial management burden on small business owners, for whom sales proceeds turnover is crucial. Naver also runs a fast settlement service for Smart Store sellers.
In particular, Coupang is building a large-scale payment ecosystem not only through Coupang Eats but also through shopping, the Wow membership, and Coupang Pay. According to Wiseapp Retail, an app and payment data analysis firm, the estimated payment amount for Coupang and Coupang Eats last year exceeded 77 trillion won. The larger the transaction scale, the greater the effect of reducing payment and settlement expense, which is why the value of using stablecoins is seen as high.
Similar moves are continuing in the retail sector at home and abroad. Japanese convenience store chain Lawson is pursuing a proof-of-concept for payments using a yen stablecoin. DoorDash, the largest delivery platform in the United States, is pushing to introduce a Blockchain-based stablecoin payment system. In Korea, Hyungji Fashion Group signed a business agreement with related corporations to build a payment system based on a won stablecoin.
◇ Standards needed for assigning responsibility in the event of an incident
However, for a won stablecoin to take root as the payment and settlement infrastructure for retail platforms, there are many challenges to overcome. In addition to securing the stability of the peg to the won, standards for assigning responsibility must be clear in the event of incidents such as system errors, hacking, or mispayments.
A financial industry official said, "If large platforms like Coupang and banks are closely connected as financial infrastructure, a leak of personal information or a security incident on the platform could damage trust in the bank as well."
The official added, "There was also the recent Bithumb bitcoin mispayment incident, and banks are extremely sensitive to the risk of financial incidents, including voice phishing," noting, "Establishing security and consumer protection systems is as critical to commercialization as implementing the technology."
☞ About stablecoins
Stablecoins are virtual assets that minimize price volatility by being pegged to the value of legal tender such as the won, the dollar, or the euro. Because their value is more stable than other virtual assets such as bitcoin, they are considered suitable for payments, remittances, and settlements. Based on Blockchain, they can reduce transaction expense and shorten settlement time. While the United States is moving to institutionalize dollar stablecoins and expand the market, Korea is continuing discussions on legislation for introducing a won stablecoin and on who should issue it.