Unless you’ve been living under a rock, you’d know that crypto is now at its vulnerable most, more volatile than ever before. Bitcoin—hovering in the US$30,000 price region—has lost almost 40% of its value since its all-time high in November 2021, when it was priced US$68,000. So if you’re a person in possession of a large number of crypto assets, would you rather sit tight or slowly start getting rid of them by buying stuff with crypto? In Singapore, some merchants are still pushing for crypto payments, making the latter an option.
Crypto payments facilitator TripleA claims to have seen a 10X increase in transaction volume over the past year, founder and CEO Eric Barbier tells The Ken. “We have seen a lot of demand from different merchants across different industries,” said Barbier. TripleA serves about 8,000 merchants globally, with about 20% of their revenue coming from Singapore. Singapore-based merchants include homegrown LVMH-backed fashion retailer Charles & Keith, online exclusive sportswear marketplace Novelship, and bespoke travel agency The Wander Clan.
TripleA and FOMO Pay are able to accept cryptocurrency in Singapore due to a Monetary Authority of Singapore (MAS) licence which allows them to use digital payment tokens (DPTs). They accept Bitcoin, Ethereum and stablecoins stablecoins Stablecoins Stablecoins are cryptocurrencies the value of which is pegged, or tied, to that of another currency, commodity or financial instrument. USDT and USDC.
So, who are the merchants seeking out their crypto payments services? Largely, those in the luxury bracket.
After all, crypto payments would appeal to the crypto-rich, who have so much crypto that they need to spend it—as the bulk of their wealth lies in it. And luxury goods are a faster way to spend all that crypto. But this also limits the kind of merchants who can offer crypto payments.
Globally, Gucci Gucci Cointelegraph Gucci the latest luxury brand to accept crypto payments in store Read more is the latest luxury brand to accept crypto payments, joining fashion labels Off-White and Philipp Plein. Luxury watch brands including TAG Heuer, Hublot, Franck Muller, and Norqain accept crypto payments as well.