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Highways Will Have Blockchain-Powered Toll Payments!
We have heard of Fast tags and Paytm Tags through which the vehicle’s tags will be scanned by sensors and devices and thus enabling the payment of toll while we pass through the tollgates on highways
Facilities like these will eliminate the manual intervention and saves a lot of time and traffic at the toll booths thus making the toll payment fully digital.
But what is the role of blockchain here? What’s the new thing it brings on to the table?
Well lets us brainstorm some of the new things that blockchain is bringing in this scenario
The entire process of reading the vehicle tag, fee processing, settlement happens on the top of DLT which offers seamless payment processing thus making it fast and efficient.
Reconciliation between the Toll authority and the bank becomes easy as every record is stored on the blockchain platform acting as a single source of proof
A similar project has been implemented in South Korea, where KEB Hana Bank, one of the biggest commercial banks in South Korea, reached an agreement with the state-backed highway operator, the Korea Expressway Corporation, to bring blockchain-based toll payments system across the nation’s highways.
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One of the biggest commercial banks in South Korea has partnered with the Korea Expressway Corporation for a blockchain-based toll system.
KEB Hana Bank, one of the biggest commercial banks in South Korea, reached an agreement with the state-backed highway operator, the Korea Expressway Corporation, to bring blockchain-based toll payments system across the nation’s highways.
According to D Daily, the project is expected to launch before the end of the year. The system will connect KEB Hana’s smartphone banking app, Hana One Q, for motorists to arrange their toll payments, defer them, or even receive toll fee refunds.
The report states that both parties involved in the deal reached to implement the blockchain solution aim to remove the cash-based or credit card payments, in part due to the COVID-19 pandemic that encourages them to offer contactless solutions.
The Korea Expressway Corporation and KEB Hana Bank want to use blockchain to share data to strengthen synergies along with the payment system project.
Strengthening contactless payments’ adoption
Kwang-Ho Lee, head of the sales division at Korea Expressway Corporation, commented on the announcement:
“We will continue to expand customized non-face-to-face (contactless) services to the public by applying blockchain technology, which is part of the Korean version of the digital new deal policy to lead the global economy after the coronavirus.”
The Ministry of Science and ICT and the Korea Internet & Security Agency approved the deal. KEB Hana also got a nod for its blockchain mobile electronic verification program from the same agencies last year.
Recently, the South Korean government unveiled its intent to invest over $48.2 billion in Blockchain and other Industry 4.0 technologies by 2025. The nation’s goal is to promote the digitization of all industries in the coming post-pandemic era.
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