Softbank Has Tested Mobile Payments Via SMS On The Blockchain

SoftBank Corp., a Japanese telecom giant and multinational holding conglomerate headquartered in Tokyo, has completed a blockchain-based proof of concept (PoC) that allows peer-to-peer (p2p) payments across various Telecom operators.

Softbank said that the technology was developed in conjunction with blockchain startups TBCASoft and Synchronoss, a company whose shares are on the Nasdaq. This company has established a Protocol called Rich Communication Service (RCS), which replaced the SMS service in Japan.

Thanks to Synchronoss, a mobile client based in Japan can travel to the US and make a dollar purchase via RCS. The RCS messaging standard can also be used to send a payment.

Together, the partners have created a PoC blockchain that integrates into the RCS of the participating Telecom operators.

The system should replace the traditional SMS system, which is mainly limited to sending text messages, with new features, including sending multimedia files and voice messages via SMS rather than through applications.

Softbank also explained that with the underlying technology of a distributed network, users will be able to send money stored in their wallets from one operator to another without any intermediaries, which will have a special benefit when traveling abroad.