Crypto.com will launch a stablecoin payment service for public transportation in Korea later this year

Foreigners will be able to pay for public transportation in Korea using stablecoins like Tether (USDT) and USD Coin (USDC) later this year.

Crypto.com, the cryptocurrency exchange, is partnering with Korean value-added network (VAN) provider KSNET to allow foreigners to pay for public transportation using physical or virtual Crypto.com cards, it announced on Monday (May 15).

The service will be piloted in Jeju Island in the fourth quarter of this year, and expanding to other regions is being considered, according to the company statement. The transportation payment service is available only to foreigners. Issuance and use of new Crypto.com cards have been restricted in Korea since November 2023.

The Crypto.com card is a prepaid card that can be used at Visa merchants and is funded by stablecoins, similar in concept to Hong Kong's Litdotpay card. Linked to the Crypto.com cryptocurrency exchange, the card offers convenient one-stop service from purchasing and loading cryptocurrencies to making payments. When users set up the auto-reload feature in the Crypto.com application, crypto assets held in their exchange accounts are automatically converted to fiat currency and loaded onto the card at a designated amount, eliminating the need for separate exchange procedures.

Crypto.com is also launching Crypto.com Pay, a service that allows users to scan QR codes at KSNET merchants to make payments using stablecoins.

A company official explained, "Settlements with KSNET for stablecoin payments are made in dollars, and merchants can choose to be paid in either won or dollars."

"By eliminating several intermediary steps typically involved in cross-border payments, we can provide payment services with significantly lower fees," the official added.