InterviewCrosshub sets out to build borderless identity, payment ecosystem

Crosshub CEO Jay Kim / Courtesy of Crosshub

Cross-border payments continue to face high costs, slow processing speeds, complex regulatory environments and a lack of interoperability between systems, Piero Cipollone, a member of the European Central Bank Executive Board, pointed out in a speech earlier this month.

As he noted, differences between national financial systems lead travelers to experience various payment barriers, including limited payment options and high currency exchange fees. In addition, mobile payment services such as Apple Pay and Alipay operate on a country-specific basis, making them less accessible to foreigners staying in a country for a short period.

This inconvenience is exactly what Crosshub set out to solve. Founded in May last year, the Korean startup is developing a global seamless payment solution that integrates identity verification with payments, allowing users to continue using their preferred payment methods across borders — overcoming the limitations of each country’s financial regulations and payment networks.

“Our IDBlock is a next-generation hybrid identity authentication system, built on advanced decentralized identifier technology. It empowers users to securely manage and selectively disclose their personal information,” Crosshub CEO Jay Kim said in a recent interview with The Korea Times.

“While the concept of selectively sharing data may sound straightforward, it is underpinned by a complex web of technologies and processes. Our solution leverages highly advanced technology, safeguarded by three core patents and three additional related patents."

Based on IDBlock, global users can access B-Pay, the firm’s borderless payment service, which enables them to continue using the same payment services they rely on at home, even when traveling internationally.

Kim said that IDBlock offers a breakthrough solution to the risks associated with sharing personal data when integrating payment services across different countries. Given that data protection laws and their enforcement vary from country to country, even large corporations often struggle to build systems that comply with all jurisdictions.

Crosshub’s integrated global payment system, which addresses these challenges, creates new opportunities for app-based services targeting travelers — such as taxis, shopping or car rentals — to attract not only domestic users but also international subscribers.

The service is currently in the proof-of-concept stage and is expected to officially launch as early as the second half of this year.

Seen is a concept image of IDBlock, Crosshub's next-generation hybrid identity authentication system. Courtesy of Crosshub

Recognizing the potential of the business, the firm was recently selected for Little Penguin, the Korea Credit Guarantee Fund’s support program for promising startups. As a result, the company will receive a total of 1 billion won ($700,000) in funding over the next two years.

According to Hana Institute of Finance, the global mobile payment market grew from $1.7 trillion in 2020 to $2.4 trillion in 2023, and is expected to reach $3.1 trillion by 2028.

Crosshub has chosen Japan and Vietnam as its primary target markets outside of Korea, pursuing a strategy of leveraging key local payment service providers through system integrations to utilize each other’s networks.

“For instance, a Toss Pay user from Korea can make payments in Vietnam by using the Momo Pay network, and similarly, Momo Pay users from Vietnam can use the Toss network to make payments in Korea. In the end, Toss and Momo will handle the transaction settlements between them,” Kim said. “Our role in this process is to serve as a cross-border facilitator, addressing the personal data usage regulations of both countries.”

The startup has also started collaborating with Stripe, a global payment gateway company.

Kim said that since Stripe’s Asia-Pacific office is based in Singapore, his company needs to establish a local entity in Singapore in order to integrate with the global payment system.

“We plan to complete the establishment of our Singapore entity by May,” he said.

Additionally, the company has been selected for the Korea Tourism Organization’s overseas branch establishment program and will receive support to set up its second overseas office in Tokyo's Shinjuku.

The firm is preparing for further service expansion after being selected recently by Thales, a French defense and security company, as a business partner for potential collaboration this year.

As Thales is a major supplier of security systems to most banks in Korea, Kim noted that if Crosshub’s services are integrated with Thales, it will open up opportunities for increased collaboration with key domestic financial institutions that are expanding services for foreign nationals.

In the long term, Crosshub is aiming to expand into the remittance service market, as international money transfers incur significant costs in Korea, particularly for exporters, importers and foreign workers.

“We plan to reduce major costs in the current international remittance system, such as SWIFT code fees. This expansion is targeted for release in 2026. Through this, we aim to grow into a global fintech company and set our sights on becoming a unicorn by 2027,” Kim said.

A unicorn company refers to a privately held startup that has reached a valuation of over $1 billion within 10 years of its establishment.