Singapore – StraitsX, a payments infrastructure firm, has recently announced a strategic partnership with Ant International and Grab to allow more efficient funds transfer through Purpose Bound Money (PBM). This move will be facilitated when inbound tourists leverage Alipay+ payment partner apps for payments at GrabPay merchants in Singapore.
Said companies have also outlined a memorandum of understanding and jointly launched a live cross-border payment system powered by stablecoins. This system further enables backend payment flows with PBM using blockchain technology such as the Avalanche network.
As of September 2024, users from across 12 Alipay+ payment partners, including Alipay (Chinese mainland), Kakao Pay, and TrueMoney (Thailand), can now transact with GrabPay merchants in Singapore. The use of PBM technology is anticipated to keep transaction processing costs consistent for both GrabPay merchants and international payment platforms under Alipay+.
On the other hand, Ant International also works alongside StraitsX to enhance the efficiency and interoperability of payments made via PBM through the Whale platform, its international treasury management solution.
Additionally, Alipay+ has expanded its acceptance in Singapore, allowing inbound tourists from 9 countries and regions to use their home payment apps to make purchases at any GrabPay merchant, charged in their local currency.
In addition, GrabPay merchants will be able to receive payments in local Singapore dollars. This allows merchants and consumers to send and receive payment in their respective local currencies instantly. GrabPay merchants also receive payments in Singapore dollars, enabling both parties to transact seamlessly in their native currencies.
Tianwei Liu, deputy CEO and co-founder at StraitsX, commented, “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. Through this, we also hope to connect the diverse economies in Asia together to bring to reality a connected and inclusive digital economy,” added Liu.
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.”
Lim further shared, “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.”
Meanwhile, Edward Yue, general manager, Southeast Asia, Australia, and New Zealand at Ant International, also stated, “We are proud to partner with StraitsX and Grab on this innovative solution. Our partnership gives global travellers even greater convenience when paying with their home payment app while in Singapore as we welcome GrabPay merchants, which include some of the most beloved local brands.”
“Additionally, we are facilitating more efficient, secure, and lower-cost fund transfers and look forward to playing our part to enhance consumer and merchant experiences through innovation,” ended Yue.
