South Korean fintech company Toss has completed a proof of concept (PoC) with Gwangju Bank to test stablecoin-based QR code payments at physical retail locations. The trial examined how bank customers could use stablecoins—digital tokens designed to hold a steady value, typically through a peg to a fiat currency—to pay merchants through an integrated process involving both the Gwangju Bank and Toss applications.

The initiative is designed to connect digital asset payments with existing banking and retail payment infrastructure. Under the model that was tested, a customer initiates a transaction through the bank's app, completes the payment via Toss, and the merchant receives the funds as part of the same transaction. Anchoring the entry point inside a bank's application also ties the stablecoin flow to customers and accounts already within the banking system, rather than a separate onboarding path for digital asset payments.

At the core of the proof of concept is a payment structure that combines stablecoin transfers and merchant settlement into a single process, potentially removing the need for a separate settlement procedure after checkout. The two companies ran the test in an environment isolated from their commercial services and are now preparing an additional round of verification that could involve actual merchants, moving the project closer to real-world retail trials.

How the integrated QR payment process works

The tested flow begins when a Gwangju Bank customer selects the stablecoin payment option inside the bank's mobile application. The Toss application then opens automatically, allowing the customer to complete the transaction by scanning a QR code at the store. QR codes are already a standard checkout format in South Korean retail, meaning the trial builds on a payment interface that merchants and customers use in everyday transactions.

The arrangement assigns distinct roles to the two applications. Gwangju Bank provides the initial interface where customers choose their payment method, while Toss manages the payment process at the merchant's location. Once the transfer is complete, the payment amount is directed to the merchant without an additional intermediary settlement step, with the system designed to confirm both the payment and the settlement at the moment of the transaction.

This structure contrasts with conventional payment arrangements in which a merchant receives confirmation at checkout but must wait for a subsequent settlement process before the corresponding funds arrive. By combining payment processing and settlement, the model could simplify transaction handling for merchants and reduce the operational steps required to receive payments.

However, the proof of concept focused on verifying the technical process rather than measuring performance under live commercial conditions. The trial did not establish how the system would behave under high transaction volumes, with multiple participating merchants, or during live customer payments.

Initial test used virtual merchants and no real assets

Toss and Gwangju Bank carried out the verification using a simulated merchant rather than an operating retail business. The test environment was kept separate from the companies' commercial services, and the process involved no actual customer information or real financial assets.

The exercise was intended to confirm that the payment sequence and settlement mechanism operated as designed. It did not measure consumer adoption, transaction volumes, merchant demand, or the commercial viability of the proposed service. The controlled setting allowed the companies to examine how their applications interact and to verify the transaction flow without exposing real customers or funds to the experimental system.

The next phase is expected to concentrate on simplifying the customer payment experience and assessing the scope of testing at actual merchant locations.

Second verification phase could bring real-world testing

Following the initial results, the companies are preparing a second round of verification. Their plans include reducing the number of steps customers must complete during payment and discussing the requirements for conducting tests with real merchants.

Shifting to physical retail locations would allow the companies to evaluate the payment experience in a more realistic environment. Such testing could surface operational issues that do not emerge in a simulated setting, including merchant integration requirements and the practical usability of QR code payments. The next phase would also offer an opportunity to examine how the proposed arrangement fits into existing retail payment operations.

Details about participating merchants, the timing of the next trial, which stablecoins would be supported, and any potential commercial launch have not been disclosed.

The initiative reflects ongoing efforts to link digital assets with established financial services and everyday payment experiences. By integrating bank applications, QR code technology, and stablecoin settlement, Toss and Gwangju Bank are exploring whether digital currency transactions can become more accessible at physical stores. Any broader rollout will depend on the outcome of further testing, operational readiness, and applicable regulatory requirements. For now, the completed proof of concept establishes a technical foundation for evaluating the model beyond a controlled environment.