Crypto payments are becoming a trend among Singaporeans
Crypto payments continue to experience increasing growth and demand around the world. Cybercriminals are probably the biggest advocates of crypto payments as it is their preferred payment method for receiving ransom funds.
But it’s not just cybercriminals who profit from crypto payments. Several organizations are now offering crypto payment rewards through various programs and offers. For example, MasterCard recently announced that it would allow partners in its network to allow their consumers to buy, sell and hold cryptocurrencies using a digital wallet, as well as reward them with digital currencies as part of loyalty programs.
Another example is Geolancer, an application to collect points of interest (POI) data verified manually on the ground by Quadrant. It offers cryptocurrency rewards to geolancers who collect POIs in their neighborhood.
Earlier last month, El Salvador also became the first country in the world to adopt bitcoin as legal tender. The Economic times also reported that Indian, Pakistani, Bangladeshi and Filipino expats in Qatar are increasingly experimenting with cryptocurrencies to send money to their families back home and save on commissions charged by wire transfer companies and bank transfers. ‘other intermediaries.
The situation may not be the same in China. The government has declared all financial transactions involving cryptocurrencies illegal. The move is finally the final blow to digital commerce in China after years of bursts on volatile currencies.
The rise of crypto payments in Singapore
In Singapore, more and more Singaporeans are investing in cryptocurrencies or using them to pay. In fact, 37% of Singaporeans%) were found to be paying or interested in paying for purchases with cryptocurrencies, according to Worldpay’s latest study from FIS’s Generation Pay research.
The research explores the spending habits, shopping experiences and payment preferences of different generations, from Gen Z to baby boomers. While there may still be a long way to go for cryptocurrency to become a mainstream payment method, the high adoption rate proves that more and more people are starting to understand how crypto payments work.
A considerable percentage of Singaporeans (37%) were found to pay or were interested in paying for purchases with cryptocurrencies, according to FIS ‘latest 2021 Generation Pay Worldpay research, which explores spending habits, shopping experiences and payment preferences in different generations, from Gen Z to Baby Boomers. Millennials (58%) are the most open and Baby Boomers (16%) are the least open to crypto payments.
Overall, the results showed that central bank digital currencies CBDCs (23%) are preferred over cryptocurrencies (11%) when it comes to using digital currencies as a means of payment. Another 22% said they had no preferences and were willing to use both to pay. At the generational level, Generation Z (18%) is the least interested in CBDCs. 24% said they had no preferences and would use both CBDCs and cryptocurrencies. Likewise, a large number of Millennials (29%) said they had no preferences and would use both CBDCs and cryptocurrencies.
For those who prefer to use cryptocurrencies, the main reason is that it is decentralized and gives them more autonomy with their money (67%). This is a particularly compelling reason for millennials (74%). On the other hand, the main reason given by those who prefer to use CBDCs is that it would be safer to be supported by the government (64%). Other reasons leading them away from cryptocurrencies include their perception that crypto wallets are more vulnerable (31%) and that cryptocurrencies could be used in illegal activities (30%).
Create a crypto ecosystem
Phil Pomford, Managing Director of Global Ecommerce, APAC, WorldPay at FIS believes the world is currently in the second wave of large-scale crypto buying, with quite a bit of institutional money entering the market, but still within a few years of using traditional cryptocurrency. .
However, he pointed out that there are still various challenges within the ecosystem. For example, in APAC, Phil explained that crypto traders find it difficult to navigate the new regulations or find a partner bank in the region. Some settlement banks are also unwilling to process transactions from crypto traders through their banking services.
“Nonetheless, we are seeing the demand for crypto increasing in certain sectors such as NFT markets which are built on DLT and require the use of cryptocurrencies. It should also be noted that there are key players in payments and bank that build their confidence in the crypto space, like DBS Bank which is launching its crypto exchange, ”Phil said.
Highlighting the craze for digital currencies, Phil added that FIS is making crypto more accessible to consumers by enabling card-to-crypto payments on exchanges. There is an adoption of card payments by crypto exchanges over the traditional use of wire transfers. As crypto continues to gain traction, consumers are increasingly looking for simple and convenient payment methods to make crypto-based purchases using cards and other familiar financial products.
“Our global partnership with crypto traders (some of the newer ones include CEX.IO, Moonpay, and OKCoin) also partly determines how other retailers view crypto. Retailers currently want fiat cryptocurrency if they accept it, and it depends on exchanges to settle transactions, ”Phil concluded.