Crypto Payment Gains Ground Among the Young in Singapore

But it's still a fraction of payments market globally and pickup is slow, say analysts

- Claire Huang

From buying a phone online to settling a bar tab at a nightclub, consumers and businesses seem to be more open to using cryptocurrency as a form of payment.

The first item Mr Yong Ming Yang paid for in cryptocurrency was a Web3 phone he bought online in the first half of 2024.

The 26-year-old, who works in the technology sector, told The Straits Times that paying with crypto is cost-effective and can be done in seconds, while one has to pay foreign exchange fees and wait one to three days for bank settlements in a normal international payment process.

So far, Mr Yong prefers stablecoins that are either USDC or USDT for overseas payments and XSGD for buying products in Singapore.

USDC is issued by payments firm Circle and exchange Coinbase, USDT is issued by blockchain platform Tether, and XSGD is issued by payments firm StraitsX.

"These are assets that are most likely to retain value and easiest to off-ramp (be converted into fiat)," Mr Yong said of his picks.

He is among a group of young and digitally savvy consumers who favor crypto transactions.

Nightlife group Zouk started to accept digital asset payments from February via a partnership with Triple-A, a firm that converts digital currencies into dollars with instant bank settlements.

Zouk's senior director of operations David Long told ST that consumer behavior is shifting, with two-thirds of the club's core clients aged 18 to 35 identifying themselves as frequent users of digital wallets or crypto platforms.