The Future of Payment Services with the integration of Cryptocurrencies

Travis Teo
Jul 10, 2019 · 4 min read

The Change in Payment System Over the Years

Payment or exchange for goods and services has existed since the dawn of humanity. The medium of exchange for goods and services have evolved drastically after their inception — bartering, gold, coins, paper notes, and now, digital payment and the e-Wallet.

Payment apps and portals are where the future of money and payment are heading. The convenience and added utility originated from the app are driving this new wave of adoption. According to a report published by Mordor Intelligence, the global digital payments market is expected to reach USD 7,640 billion by 2024, recording a compound annual growth rate (CAGR) of 13.7%, during the forecast period of 2019–2024. (Mordorintelligence, 2019)

In a report published by Worldpay, it is also forecasted that e-Wallet will be the most frequent payment method by 2022.

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An info-graphic taken from Worldpay

The global economy is moving towards digitalization to leverage the speed and convenience offered. With a multitude of digital transactions taking place, the chances of a security breach are higher. This is where blockchain technology could integrated with e-Wallets to disrupt the ecosystem by providing a more secure, cheaper and speedy transaction for all, without any intermediaries.

Future of Payments — Cryptocurrencies

Blockchain is the future of cross-border payments. Companies that realize its potential and begin exploring ways to incorporate it will have a distinct advantage such as:

1. Cost-Effective: Instead of paying transfer fees to multiple parties, companies using blockchain only need to pay little to no fee. The cost savings will be substantial for organizations that make frequent international transactions.

2. Almost Immediate: Blockchain payments are completed in close to real time. The ability to transfer money instantaneously helps businesses be more responsive, taking on new projects or addressing customer needs without waiting for funding to come through.

3. Transparent: Blockchain eliminates the risk of discrepancies in record keeping. As a decentralized ledger, it holds a verifiable and irreversible record of all transaction and distributes it for all authorized users to see.

4. Secured: With blockchain, all records are secured by cryptography, tied to previous transactions and distributed among participants in a ledger. To tamper with the data, a hacker would have to alter all earlier transactions in the ledger — making blockchain immutable.

However, for cryptocurrency to be mainstream, there needs to be a daily use case. Initially, that spend will more often than not require a transition from crypto to fiat. Retailers, employees will not be willing to accept the transfer cost themselves or accept the fluctuation risk as crypto can be highly volatile. Thus, this leads us to the next key point, “multifunctionality”. An exchange should be integrated into the app, allowing the users to liquidate, invest and follow the cryptocurrency markets.

Adoption in Singapore and Kopitiam’s Recent Venture

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As one of the most highly banked populations in Southeast Asia, Singapore is deemed as one of the most popular fintech hubs of Asia. Singapore’s progressive nature in pushing the mainstream adoption of cryptocurrency as a form of payment resulted in the rise of services that accept cryptocurrency as a form of payment, with the most recent Kopitiam jumping onto the bandwagon as well.

The recently revamped food court is designed to keep pace with the latest blockchain technology. The KOPItech will feature 20 self-service kiosks that will be linked to an e-payments system. Users will be allowed to use Bitcoin, Ethereum, and Creatanium to transact.

Kopitiam will convert cryptocurrencies to fiat on a weekly basis with the help of its fintech partner. Kopitiam will also bear the risk of currency fluctuations. Stallholders at the food court will receive their earnings in Singapore dollars. Customers can order food and make payments at kiosks. These kiosks are all centralized and display menus from almost all stalls located in the food court.

With all the measures in placed to push for a new era of payment, Kopitiam CEO Alden Tan suggested that the toughest challenge will be to get customers and stallholders to accept cryptocurrencies and a new way of ordering and paying for their food, but if these initiatives are successful, they could be rolled out at other malls in Singapore where Kopitiam and FairPrice are co-located.

Tokenize’s New Initiative — Xclusive App

In line with Singapore’s effort of exploring blockchain and crypto payment, Tokenize is coming up with a unique cashback reward app — Xclusive, which uses a stablecoin to transact and redeem coupons. With the integration of our exchange (Tokenize Xchange), users are also able to liquidate, invest and follow the cryptocurrency markets as well as to transact using it.

Xclusive does not only provides the benefits mentioned above, but also tackle issues such as the fluctuation risk. Since Xclusive would be using a stablecoin (pegged to SGD) for all its transactions, there will be little to no fluctuation risk.

Benefits for Merchants:

· Free publicity & advertising

· No interference of the PoS system

· Quantifiable and measurable sales

· Plug-and-play model

Benefits for Users:

· Vouchers & coupons

· Incentivized cashback rewards

· Multi-functionality

· Hassle-free

The Tokenize Xclusive App is already available for download on the Apple App Store.

If you are keen to find out more or are interested to be one of the merchants you can contact us at (2019). Digital Payments Market | Growth, Trends and Forecast (2019–2024). [online] Available at: [Accessed 9 Jul. 2019].

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