Pay with crypto? Fintech tie-up to offer service at 20,000 Singapore merchants

SINGAPORE – Two Singapore payments firms have teamed up to enable stablecoin transactions here, tapping a small but growing group of “crypto natives” who use digital wallets and cryptocurrencies as seamlessly as traditional and internet banking.

The partnership between digital asset payment firm Triple-A and payment processor HitPay will enable 20,000 small and medium-sized enterprises (SMEs) in Singapore to accept US dollar-pegged stablecoins such as USDC, USDT and PayPal USD from customers with crypto wallets, giving them yet another option to pay.

The move highlights how Singapore’s crypto industry is maturing, with stablecoins potentially paving the way for practical, everyday use.

Once viewed mainly as speculative assets, digital tokens are now being integrated into payment systems, reflecting a shift towards broader acceptance and real-world utility.

Stablecoins are a type of cryptocurrency whose value is pegged to a currency, commodity or financial instrument to reduce price volatility. They are commonly used as a more stable medium of exchange, such as for payments and trading, than highly volatile tokens, like Bitcoin.

Stablecoins also let businesses and consumers transact instantly across borders at lower fees.

Under the partnership, Triple-A will convert payments made in stablecoins into Singapore dollars at a fixed rate at the point of sale, ensuring that merchants receive the full transaction value in fiat currency through HitPay.

This ensures that a merchant selling an item for $100 will receive $100 after settlement, with Triple A bearing any exchange-rate movement between the US and Singapore dollar.

The firms declined to name the merchants that will accept the new payment option, but said customers can use their stablecoins at both online and physical stores. Overseas customers with crypto wallets will also be able to transact at these stores.

HitPay chief executive Aditya Haripurkar said that Singapore’s merchants are always looking for ways to reach new customers without adding operational risk.

“By integrating stablecoin acceptance with instant fiat settlement, we’re helping businesses lower cross-border payment costs by up to 50 per cent and access faster, next-day settlements,” he said.

Mr Haripurkar added that while domestic payments in Singapore are well served by local schemes such as PayNow, cross-border acceptance is still expensive and inefficient for merchants.

“Stablecoins bridge that gap, enabling faster, lower-cost international payments that benefit businesses,” he said.

Both HitPay and Triple-A are regulated by the Monetary Authority of Singapore (MAS) as major payment institutions.

Triple-A chief executive Eric Barbier said that the new payment method will enable businesses here to reach crypto-native consumers while “removing volatility and keeping compliance straightforward”.

“What we’re doing with HitPay is timely as Singapore was the first developed jurisdiction to introduce clear regulations for stablecoins and other digital currencies back in 2020 – several years ahead of Europe and the United States,” he said.

The new partnership comes on the heels of a recent survey by the Singapore Business Review, which found that six in 10 businesses here plan to accept cryptocurrency payments within the next two years.

Demand to pay in crypto has been gaining traction, with the latest data from blockchain analytics firm Chainalysis estimating that merchant services in Singapore received nearly US$1 billion (S$1.3 billion) worth of crypto payments in the second quarter of 2024.

The use of stablecoins and other cryptocurrencies has gained traction in Singapore in recent years.

For example, home-grown fashion label Charles & Keith accepts payments in Bitcoin, Ethereum and USDT, while luxury hotel Capella Singapore allows guests to pay with Bitcoin.

In September, cryptocurrency exchange OKX launched a service allowing its customers to pay merchants on Grab Singapore with stablecoins for the first time.

Payments done using USDC or USDT stablecoins through the service, called OKX Pay, will first be converted to XSGD – a

Singapore dollar-backed stablecoin

– after which merchants will receive the amount in Singapore dollars.

Mr Timothy Misir, managing editor of a media firm, said that he uses stablecoins regularly for cross-border payments, such as paying freelance writers and contributors who are based overseas.

“The transfers settle instantly and cost next to nothing, which makes it hard to justify traditional payment rails anymore,” he said.

“It’s a clear example of how digital money already works better in practice, even if the broader system around it is still catching up.”