SOUTH KOREA. Lotte Duty Free has teamed up again with fintech company Lordsystem to expand its mobile passport-based digital ecosystem and advance its travel retail offerings to domestic and foreign consumers.
The retailer has signed a new DX (digital transformation) partnership agreement with the company to develop new services.
Both companies last year signed a business agreement to develop Lotte Duty Free’s digital distributed identification that can replace real passports at downtown duty-free shops.
In June, the retailer successfully launched a mobile passport in the duty free industry.
Lotte Duty Free will be in charge of expanding the global travel retail DX system. Lordsystem will manage the implementation of the platform based on patented technologies such as mobile passports, easy payment services and tax refunds.
Under the agreement, a One-ID Pass digital platform ecosystem will also be developed for global travellers. Based on this, the easy payment platform will be promoted globally.
Lotte Duty Free also plans to develop new data-based digital services with the aim of expanding its revenue model.
The Lotte Duty Free mobile passport will be expanded and introduced to Lotte Group affiliates and external partners.
The retailer plans to apply the DID technology based on Lotte Duty Free mobile passports across tourism-related businesses including domestic department stores, hotels, casinos, MICE and hospitals.
This solution is designed to streamline the identity verification process for foreigners, and even the process of receiving their tax refund at the same time through their smartphones.
Globally, the Lotte Duty Free digital system is now being used across six countries. The company plans to deliver a unique retail experience by rolling out the mobile passport system at its overseas stores in countries including Singapore, Japan and Vietnam. It also plans to implement an easy payment solution that is linked to the payment system being used in a particular market.
In addition, Lotte Duty Free and Lordsystem will participate in Tourism Expo Japan to be held in Tokyo this October, and in the Consumer Electronics Show in Las Vegas in January next year.
Lotte Duty Free CEO Kim Joo-nam said: “Lotte Duty Free will build a global travel retail platform to drive digital transformation in the industry and strive to enhance customer experience. We will do our best to set a good example for win-win.”
Lordsystem holds a patent for digital distributed identification (DID) to develop the system. Lotte Duty Free Shop mobile passport service, GKL Seven Luck Casino access certification, and Incheon Airport smart pass are now in use to expand services.
In March, the company secured approval from the South Korean government to allow customers to present mobile passport identification without a physical passport at duty free shops and casinos. ✈
