Lord System, a forward-thinking Korean startup, has emerged as a pioneering force in the travel industry with its groundbreaking “Mobile Passport” solution, which is rapidly gaining popularity among both domestic consumers and global tourists.
Mobile Passport leverages cutting-edge digital distributed identification (DID) technology to seamlessly digitize and safely authenticate passport information. This revolutionary platform enables travelers to securely access their passport details via QR codes on their smartphones, obviating the need for physical passports and time-consuming verification procedures.
Beyond simplifying identity authentication, the platform enables real-time passport information transfer to South Korea’s Customs Services, streamlining tax-free service without the expense of specialized passport reading devices. Furthermore, it offers mobile immediate refund services, transforming the travel shopping experience for individuals worldwide.
CEO Jang, the visionary behind Lord System, provided insights into the company’s journey, stating, “We embarked on this path when we recognized a gap in the travel industry’s digitalization. The mobile passport concept was born from a desire to enhance travelers’ convenience and security, particularly in the realm of tax-free shopping. Our mobile passport represents a comprehensive solution that seamlessly connects travelers with the Korea Customs Service, simplifying the shopping experience.” Since its establishment in 2015, Lord System has achieved remarkable milestones. The company received acclaim from the Korea Customs Service with the ‘Notice Revision on Bonded Store Operations’ and later secured approval from the Ministry of Trade, Industry, and Energy for its ‘Mobile Passport Identity Verification Service.’ These milestones paved the way for the official launch of Lord System’s mobile ID business.
Transforming Travel Shopping with Lotte Duty Free Partnership
In a significant partnership with Lotte Duty Free, Lord System introduced its mobile passport solution in June 2023. The app rapidly gained traction in Korea, amassing over 10,000 users within a month and surging to an impressive 16,720 users by August, with an average daily growth rate of 270 new users.
Lord System plans to target duty-free shops in Singapore and also in countries where Lotte Duty Free operates, including Japan, Vietnam, Thailand, the Philippines, and Australia. To bolster their platform and develop new services, Lord System has solidified a DX (digital conversion) partnership agreement with Lotte Duty Free, setting the stage for the creation of a ONE-ID PASS digital platform ecosystem tailored for global travelers.
Lord System’s International Expansion and Future Endeavors
Lord System’s mobile passport is not exclusive to Koreans but has been embraced by foreign tourists visiting South Korea. Trip.PASS, the tourism finance platform, offers essential functions for travel, including mobile simple payment, mobile tax-free, mobile transportation, payment cashback, and discount coupons, along with various benefits. Especially the immediate tax-free shopping through the mobile passport is a service that provides discounts at the same time as payment without reimbursement at the airport. Beyond basic shopping, this service is also well received in the cosmetic surgery market as an innovative service. Lord System’s mobile passport is expanding its use beyond duty-free shops to casinos, tax refund and other industries which need passport.
In collaboration with Grand Korea Leisure (GKL), a renowned casino company, Lord System conducted a successful Proof of Concept (PoC), leading to its selection as a mobile passport regulatory sandbox verification special business operator in July. Foreign visitors who register their passport information on the mobile passport platform can now effortlessly access domestic duty-free shops and casinos without requiring a physical passport.
Lord System is poised for global expansion. Following a successful PoC with a Japanese company, the company plans to introduce cross-border simple payment services in the first quarter of 2024. Starting with Japan, Lord System will launch simple payment services in 10 Southeast Asian countries such as Vietnam and Singapore. CEO Jang emphasized their commitment to international growth, stating,
“We are excited to participate in the Osaka Tourism Expo in Japan this October, and we are actively engaged in PoC initiatives related to simple payments and tax-free with Japanese companies.”
Lord System is also set to showcase its innovations at the International IT and Consumer Electronics Show (CES) in 2024, where they will casino DX and cashless system to a global audience. Their expansion focus includes markets like Macau, the Philippines, and Japan which is poised to open a casino complex in 2029, where they will collaborate closely with the Korea Tourism Organization.
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