South Korean payments company NHN KCP has launched a stablecoin payment pilot linked to the Payco platform, testing whether blockchain-based payments can work efficiently in everyday transactions.
According to reports, the company is running the proof-of-concept project on a payments-focused blockchain network built with Avalanche. The trial combines online and offline payments in what NHN KCP describes as an end-to-end stablecoin payment environment.
Korea’s leading retail payment app #PAYCO is now running full stablecoin payment cycles on @avax — from QR scan to $KRWPS settlement in ~2 seconds.
NHN KCP processes payments for Netflix, Spotify, Apple & Amazon in Korea. They built a payment L1 on avalanche and are running this…
— Justin Kim (@justinkim415) May 21, 2026
The move comes as payment firms increasingly explore stablecoins as a faster settlement option beyond crypto trading and investment use cases.
Stablecoins move from online purchases to offline retail payments
Under the pilot, users can buy and sell Payco gift certificates with stablecoins directly through the Payco app. The project also extends into physical payments, with NHN KCP testing stablecoin transactions at a cafe and cafeteria located inside its headquarters.
The trial involves around 700 employees and is aimed at checking whether stablecoins can operate reliably in real retail settings.
NHN KCP said performance tests showed transaction approval times of roughly two seconds from QR code scan to payment confirmation. The company is using the pilot to assess whether stablecoins can serve as a practical payment method for day-to-day transactions.
Meanwhile, Alchemy Chain outlined a roadmap to build a dual-regulated stablecoin payment network spanning Europe and Asia, aiming to connect traditional finance with blockchain-based settlement systems.
Merchant tools and settlement tracking added to the payment test
Alongside the payment system, NHN KCP introduced what it called the industry’s first stablecoin merchant administration platform.
The dashboard allows merchants selling gift certificates and physical stores participating in the pilot to track blockchain payment flows and settlement data in real time.
According to the company, the system was designed to mirror the experience of traditional card payment platforms, allowing merchants to monitor transactions and settlements without requiring blockchain expertise.
How does this refine the stablecoin payment system?
NHN KCP plans to refine the system using data collected during the trial and share results with financial partners and major merchants as discussions around commercial deployment continue.
The pilot also adds to wider digital currency efforts in South Korea. NHN KCP has previously partnered with NH NongHyup Bank on digital payment initiatives. At the same time, KB Financial Group has separately explored stablecoin testing, highlighting growing interest among Korean financial and payment firms in blockchain-based settlement systems.
Read Also: South Korea Moves to Bring Crypto Rules Into Regulatory Sandbox
South Korea’s stablecoin debate is still unresolved
The country has been debating whether stablecoin issuance should be restricted mainly to banks or opened to technology and fintech companies.
The Bank of Korea has pushed for a more conservative model, arguing that banks should play a central role in issuing won-denominated stablecoins because of concerns around money laundering, financial stability and monetary policy.
The Financial Services Commission has taken a comparatively more open position toward technology companies participating in the market, arguing that excessive restrictions could limit innovation.
That policy debate remains important for NHN KCP because a successful payment network does not automatically mean the company can issue or distribute its own won-backed stablecoin.
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