Samsung’s enterprise technology arm is building a blockchain-based settlements solution for merchants and banks.

The Korea Herald reported Wednesday that Samsung SDS had signed a memorandum of understanding with Israeli fintech solutions provider Credorax to develop the solution, aimed to create efficiencies by automatically logging payments data on bank records and ledgers.

The product, which hasn’t yet been named publicly, will work on Samsung SDS’ Nexledger Universal platform, the proprietary blockchain first unveiled in 2017. Work processes will be automated using AI technology from Brity Works, another Samsung SDS company.

Hong Won-pyo, Samsung SDS president and chief executive, said to local media the agreement with Credorax, which has already provided solutions to companies across the European Union and broader economic area, will enable the Korean tech company to gain a foothold in the region’s payments sector.

“Together with Credorax, which specializes in payments solutions, Samsung SDS will try to expand its business in the European sectors that seek digital transformation,” he said.

Credorax did not immediately respond to requests for comment.

Samsung SDS changed its articles of association in February to include e-finance as one of its main business areas. SDS’ value grew by $3.7 billion in 2019, an above-average growth rate for the broader tech sector. Speaking to the Korea Herald, Chief Strategy Officer Im Soo-hyun attributed the company’s good fortunes to successful inroads into AI and blockchain technology.

In November 2019, Samsung SDS announced it would enhance privacy on Nexledger through a partnership with Israeli-based QEDIT to integrate zero-knowledge proofs into the platform. A medical-claims processing system built on top of the Nexledger platform, launched at the end of last year.

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