Shinhan Card launches blockchain-powered digital warranty service for used goods transactions

Shinhan Card's headquarters in Seoul / Yonhap

By Lee Min-hyung

Shinhan Card has launched a blockchain-powered digital warranty service used to certify the authenticity of products.

The card firm teamed up with BGZT, a Seoul-based startup operating a used goods sales platform, enabling customers to access the service at BGZT's offline stores. Shinhan Card said it would expand the service by continuing to sign partnerships with retailers and manufacturers here.

When customers purchase goods from BGZT's three stores in Seoul, they can scan a QR code on the purchased product and receive a digital warranty. They can then check detailed information on the products via Shinhan's pLay mobile application.

The digital warranty service allows customers to check an item's specific serial number and appraisal information on the product, Shinhan Card said. Even if customers do not purchase items with the firm's credit or debit cards, they can access the service, according to the company. Both firms plan to sell 10,000 products that can be certified with the digital warranty service by the end of this year.

“We will increase the credibility of used products by introducing more secure blockchain technologies and offering better customer experiences,” a company official said. “We will keep developing diverse blockchain-backed payment services used in day-to-day life by partnering with more manufacturers and retailers.”

The launch of the new service came about a year after Shinhan Card and BGZT signed a partnership to expand their strategic alliance on platform businesses.

The used goods products market is growing at a rapid pace here. According to industry data, the market was worth around 4 trillion won ($2.9 billion) in 2008 here, but the figure surpassed 20 trillion won in 2020. More than a third of the trading is estimated to be made via the three biggest used goods trading platforms ― including BGZT.