Aiming to facilitate seamless transactions for inbound tourists using local payment apps at GrabPay merchants in Singapore, stablecoin firm StraitsX launched a cross-border payment solution in partnership with GrabPay, a mobile wallet for Grab ecosystem, and Alipay+, the offshore payments firm owned by Ant International
What’s the significance: The partnership emphasizes the role of blockchain in reducing transaction costs and improving cross-border payments; it’s also offering crypto traders and enthusiasts more opportunities for adoption and efficiency in Southeast Asia.
Key Details: In a statement, StraitsX highlighted that its cross-border payment solution will reduce transaction costs, improve cash flow, and simplify cross-border transactions for SMEs and consumers in Southeast Asia.
- The Integration of Blockchain: The solution will utilize stablecoins through the Purpose Bound Money to settle payments in Singapore dollars for GrabPay merchants.
- The blockchain network to be used is Avalanche.
The Goal: The solution is seen to expand Alipay+’s acceptance in Singapore, enabling seamless payments for tourists using their local payment apps.
- The partnership aims to capitalize on the expected increase in tourist arrivals, from 13.6 million in 2023 to 16.5 million in 2024, enabling merchants to benefit from the growing tourist spending.
- Moreover, Southeast Asia’s cross-border e-commerce is also noted to grow significantly, with revenue expected to hit $148 billion by 2027, highlighting the need for SMEs to adopt more efficient payment methods.
Key Quotes From Involved Entities:
- Tianwei Liu, the CEO and co-founder of StraitsX, shared that offering a cross-border payment experience through blockchain technology is his firm’s goal since founding it:
“Embarking on this journey with Ant International and Grab has been remarkable and as we combine our expertise, market reach, and technological capabilities, we are confident that this joint effort will foster greater access to digital financial solutions for SMEs and consumers alike. Through this, we also hope to connect the diverse economies in Asia together to bring to reality a connected and inclusive digital economy.”
- Kell Jay Lim, the regional head of GrabFin at Grab, stressed that the partnership aims to reduce payment friction for consumers and businesses, emphasizing that tourists visiting Singapore can use their preferred wallets for payments at GrabPay merchants:
“Our partnership with Ant International and StraitsX is part of our ongoing efforts to minimise friction and enhance the payment experience for consumers and small businesses on our platform. Currency exchange can often be a pain point for tourists. This also provides these merchants with immediate Singapore dollar settlement, improving cash flow and reducing the complexities associated with foreign currency transactions.”
- Edward Yue, the general manager for Southeast Asia, Australia and New Zealand of Ant International, also insisted that the partnership enhances the payment experience for global travelers in Singapore:
“Additionally, we are facilitating more efficient, secure, and lower-cost funds transfer, and look forward to playing our part to enhance consumer and merchant experiences through innovation.”
Worth reading: In 2022, Grab launched a web3 crypto wallet in Singapore, supporting Polygon and enabling users to manage digital assets, send and receive tokens, and use NFT vouchers for food and experiences.
This article is published on BitPinas: Last Month: Fintech Collab Launches Cross-Border Payment for SG Tourists
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