[Announcement] About Paycoin’s Global Business Plan

We would like to share detailed information regarding our global business related to the previous [Announcement] on the NEW business model and roadmap for Paycoin.

1. How and why Paycoin Team decided to Expand business in a global scale

To summarize the background for Paycoin’s global expansion, Korean financial authorities have determined that Pacoin’s payment structure involves an exchange of fiat(Korean won) and cryptocurrency(PCI), in which Payprotocol, the issuer of PCI needs a different type of VASP license. As such, they have requested that we must obtain a bank-issued deposit/withdrawal account and file for a new VASP license with a change of business type (including trading/exchanging business). We signed an MoU with one of Korean local banks in August 2022 and have faithfully followed the procedures and fulfilled the criteria the bank requested. We are currently in the final stages.

However, Korean financial authorities have raised another issue regarding self-issued cryptocurrency(PCI) being used in its own payment business. Due to the concerns among them, it has been deemed difficult to pursue Paycoin payment services in Korea for now. So instead, we plan to expand the usability of PCI in global markets where cryptocurrency regulatory environments are more advanced and institutionalized.

※ We would like to clarify that the change of business structure and global expansion does not mean that we are giving up on our domestic business. We will do our best to respond quickly to establish clear standards through the enactment of the Digital Asset Basic Act (DABA), and to pursue Paycoin payment service in Korea.

2. Paycoin’s Global Status

[Global PCI Distribution Status] Wrapped PCI (wPCI), which is being distributed globally, is currently listed on two global exchanges, Huobi Global and OKX. The average daily trading volume for the past year has been 910,000 and 310,000 respectively. As of March 16, 2023, there are 8,368 wPCI holders globally, with a total of approximately 5.2 million in circulation. It is difficult to interpret the data meaningfully at this point, as there has been no separate overseas marketing conducted.

However, with the activation of global Paycoin payments in the future, it is expected that the trading volume of global exchanges will increase rapidly (without additional issuance), and we are also considering to add Paycoin to other global exchanges to increase accessibility. Follow-up regarding this matter will be transparently announced later.

3. Overseas Business Plan and Schedule

[Scope of Paycoin Global Business] The scope of Paycoin’s global business is as follows:

1. Korean nationals making payments at international merchants
2. International users making payments at Korean merchants
3. International users making payments at international merchants

We plan to focus on the ranges of 2) and 3) for this new business model.

[Advancing Global App] As of March 2023, Paycoin has selected the global payment business as its top priority task and is pursuing the development of enhancing global app. The main features include wPCI payment support within specific countries’ merchants and UnionPay’s rechargeable prepaid card payments.

The schedule for app development is as follows:

2Q23: Enhancement of app features and field testing, external solution (enhanced AML, exchange rate, etc.) integration, and UI/UX planning

3Q23: Target country marketing planning and official launch of global app with wPCI payment and UnionPay prepaid card

[Global Expansion and Marketing Plan] As the plan for overseas expansion takes shape, we plan to aggressively pursue marketing to secure a global positioning based on our marketing experience in Korea. First, our strategy for securing Paycoin usage will focus on securing partner merchants in target countries. In Korea, our parent company, Danal, has secured 150,000 merchants as major usage locations, and in target countries, we plan to expand usage locations through partnerships with Triple A in Singapore and UPC in Japan.

• Singapore: We have completed a contract with partner Triple A and are preparing for development. Our goal is to launch the official service by the end of 2Q23, along with the completion of global app development.
• Japan: We will complete the contract with partner UPC in April and start development. Our goal is to launch the official service by the end of 2Q23, which is similar timing to Singapore.

We also plan to quickly attract global users through our own campaigns. Based on the marketing know-how, which we have accumulated since the early days of Paycoin’s domestic business, we are currently planning step-by-step marketing strategies such as sign-up events, payback, and payment discounts.

• Sign-up Event: We will provide certain amount of PCI for the new users to activate initial payments
• Payback: A payback event will be held as part of a retention strategy to give back a portion of the user’s amount paid.
• Payment discount: Discount services will be developed shortly after launching in cooperation with global merchants, which Triple A and UPC are related.

Global Marketing Plan (Example)

The marketing schedule is as follows:

[Q3 2023]

• We plan to hold a sign-up event for the new users in the country for a month when we officially launch in Singapore and Japan.
• We plan to hold a wPCI prepaid card charging event for the new users for three months after the global app launches.

[Q4 2023]

• We plan to focus on attracting active users through cashback events for three months after the launch.
• As a long-term marketing strategy, we plan to promote discount events in cooperation with various merchants.

4. Possibility of license issues in global business development in Korea

Paycoin currently has a FINMA SRO registration in its home country of Switzerland and holds a license to provide digital asset payments in Switzerland and Europe.

In addition, the companies that announced as partners in Singapore and Japan currently hold local payment-related licenses and provide payment services using self-issued coins in countries legally.

Paycoin is conducting a review of local licenses and regulatory environments as a top priority in expanding its global payment services and will do its best to provide stable services.

Thank you.

About Paycoin

Paycoin is a blockchain project that is providing the virtual asset based payment service. As a subsidiary of “Danal” — an integrated payment solution provider — Danal Fintech provides virtual asset payment services based on Paycoin blockchain, which reduces the intermediaries in the existing payment process, enabling lower transaction fees and faster settlement cycles to merchants, and a safe and convenient payment environment to users. Paycoin is the first virtual asset that is being commercialized as payment in Korea, and we aim to lead this new payment market and drive adoption for the service.

Website | KakaoTalk(KR) | Kakao Channel(KR) | Telegram(ENG) | Twitter(ENG) | Facebook(KR) | Paycoin Wallet(KR) | Paycoin Global Wallet