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Crypto Payment in Singapore: Chainalysis Reports Growing Adoption

Jesper Leong

September 12, 2024
5 min read
Blockchain Cryptocurrency Payments Reports

The fifth annual Chainalysis Global Crypto Adoption Index looks at crypto payment in Singapore, and its growing acceptance in the country.

Singapore is increasingly adopting cryptocurrencies as a valid means of payment. According to Chainalysis’ 2024 Global Adoption Index, which analyses countries that lead crypto adoption, the country ranks sixth in terms of cryptocurrency value received, demonstrating a growing interest in digital assets.

The report, now in its fifth annual edition, explores why people in countries around the world are embracing the use of cryptocurrencies. The answer seems to be a preference for more payment methods, as well as the ease of using cryptocurrencies to facilitate payment in Singapore.

Crypto Payment in Singapore Takes Off

The Central & Southern Asia and Oceania (CSAO) region, which includes Southeast Asia, has witnessed a surge in crypto asset inflows which accounts for 16.6% of the global value received.

That amounts to more than US$750.0 billion in crypto asset inflows, placing the region behind only North America and Western Europe. Singapore stands out within the CSAO region, in part thanks to its growing acceptance of crypto payment methods locally.

While the local crypto trend was historically driven by institutional investors, the crypto market in Singapore is now seeing a shift towards a broader use by individuals. Data analysis reveals a significant increase in crypto payments in Singapore, particularly among small and large retailers. This suggests a growing preference for crypto as a payment option.

Comparing the data on crypto payment in Singapore, large retail brands saw an increase of slightly over 40%, with payment values ranging between $1,000 to $10,000.Crypto payment methods also grew in popularity amongst small retail brands with a growth rate of around 30%.

Ease of Payment in Singapore with QR Code Payments and Adoption

Crypto payment enablers like dtcpay, and partnerships between super-apps like Grab taxi and crypto firms, are driving the adoption of crypto payment in Singapore.

Grab is not new to offering alternative payment methods to its customers. While its GrabPay card has been discontinued, it had also previously teased the adoption of cryptocurrencies.The company has now come out in full swing, allowing users to pay in crypto after its partnership with crypto payments firm, Triple-A.

Customers can now choose to pay with Bitcoin (BTC), Ether (ETH), StraitsX’s Singapore dollar-backed stablecoin XSGD, Circle’s USDC stablecoin, or Tether’s USDT stablecoin. The integration of crypto payment options into popular platforms like Grab has led to a wider range of merchants accepting crypto payment in Singapore.

Locals Prefer More Means of Payment in Singapore

The increasing popularity of crypto payments in Singapore is evident in the growing volume of transactions.

In the second quarter of 2024, the total value of crypto received by merchant services in Singapore reached nearly $1 billion, surpassing previous records. This trend indicates a growing acceptance of crypto as a payment method, even in a market with highly efficient retail fiat payment systems.

The surge in crypto payments can be attributed to several factors, including increased awareness of cryptocurrencies, the growing number of merchants accepting crypto, and the convenience and efficiency of digital transactions.

Moreover, the growing adoption of smartphones, and the widespread availability of QR code payment systems, have further facilitated the use of crypto payment in Singapore.

Less Speculation, More Real-world Use

The rapid adoption of stablecoins like XSGD further demonstrates the practical use of cryptocurrencies in Singapore.

StraitsX, which issues XSGD, is a Major Payments Institution licence holder. More than 75% of XSGD value transferred during the period studied took place in sizes of $1 million or below, with almost 25% of transfers valued under $10,000 which suggests a strong base of retail activity. Yet it would be hard to imagine that Singapore would have reached this level of adoption years ago.

Singapore’s financial authorities seem to have a love-hate relationship with cryptocurrencies, always seemingly swinging between innovating with or regulating cryptocurrencies. The previous chairman of the Monetary Authority of Singapore (MAS), Mr Tharman Shanmugaratnam, also previously called the digital asset “purely speculative” and “slightly crazy.”

But under the seemingly strict façade underlies a county that is willing to innovate, albeit within regulated guidelines, playing a crucial role in fostering a more favourable environment for digital assets.

Singaporeans Embrace Payment Methods

The more the merrier, and having more payment options is one thing Singaporeans can all agree is a good thing. The growing adoption of crypto payment in Singapore is a testament to the increasing acceptance of digital assets as a viable payment method.

The combination of regulatory clarity, merchant adoption, and the convenience of crypto payment locally positions Singapore as a leading hub for digital assets, and a likely candidate in shaping the future of digital assets in the CSAO region.

Read the report here.

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