StraitsX, a digital asset payments infrastructure provider in Southeast Asia, has partnered with Ant International and superapp Grab to launch a new blockchain-based cross-border payment system.
This collaboration follows an initial MOU signed at the 2023 Singapore Fintech Festival.
The new system uses Purpose Bound Money (PBM), which specifies the conditions for using stablecoins, and the Avalanche blockchain.
The use of PBM is expected to keep payment processing costs consistent for GrabPay merchants and international payment apps within the Alipay+ ecosystem.
This enables tourists to make payments at GrabPay merchants in Singapore using their home payment apps, such as Alipay and Kakao Pay, through the Alipay+ network.
Payments will be settled instantly in Singapore dollars via a regulated stablecoin, providing merchants with immediate local currency settlements.
This streamlined approach aims to reduce transaction complexities and support small and medium-sized enterprises (SMEs) with efficient and secure cross-border transactions.
Ant International, which operates Alipay+, connects over 1.6 billion consumers through more than 30 payment partners globally, enabling seamless cross-border payment experiences.
Participating GrabPay merchants include popular names like CHAGEE, BreadTalk, Toast Box, and iStudio, offering tourists familiar and convenient payment options.
Edward Yue, General Manager for Southeast Asia, Australia, and New Zealand at Ant International, noted that the partnership with StraitsX and Grab aims to provide global travelers with more convenient payment options and supports more efficient, secure, and cost-effective fund transfers.
Tianwei Liu, CEO and Co-Founder of StraitsX, said,
“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.
Building a cross-border payment solution using blockchain technology to enable a seamless cross-border payment experience has been our mission since day one.”
Kell Jay Lim, Regional Head of GrabFin at Grab, said,
“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.
With this collaboration, visitors to Singapore can now enjoy the convenience of using their preferred wallet when paying at any restaurant or retail merchant displaying the GrabPay QR. This also provides these merchants with immediate Singapore dollar settlement, improving cash flow and reducing the complexities associated with foreign currency transactions.”
Featured image credit: Edited from Freepik
