A Milestone in Payment Technology
Ant International, Grab, and StraitsX, part of the Fazz family, have embarked on an innovative journey, exploring the application of Purpose Bound Money (PBM) in cross-border transactions. PBM, a groundbreaking protocol originating from the Monetary Authority of Singapore’s Project Orchid, is poised to revolutionize payment processing by lowering costs and directing funds towards specific purposes.
Expanding Horizons for Local Merchants
This collaboration is a boon for GrabPay merchants, enabling seamless integration with Ant International’s Alipay+ solutions. This integration aims to tap into a vast tourist base, offering new payment avenues to millions of international visitors to Singapore. Small and micro merchants, in particular, stand to gain significantly, overcoming the challenges posed by high integration costs and lengthy processes associated with digital payment methods. By leveraging PBM and distributed ledger technology, these merchants can effortlessly cater to overseas customers, simplifying the cross-border payment experience.
Seamless Consumer Experience
For consumers, the implementation of PBM ensures a familiar and hassle-free payment experience. The technology’s compatibility with existing payment infrastructures eliminates the need for additional applications or wallets, ensuring a seamless transaction process for both domestic and international shoppers.
Also read: Revolutionizing SME Financing: MYbank’s Innovative Digital Solutions Unveiled at Singapore Fintech Festival
About the Collaboration
In this collaborative effort, GrabPay merchants will be able to accept payments from the Alipay+ network, encompassing over 1.5 billion consumer accounts. This capability is powered by blockchain technology, utilizing XSGD, a Singapore dollar-backed stablecoin issued by StraitsX. The implementation of PBM not only facilitates lower payment processing costs but also introduces a new level of security. Smart contracts restrict the use of XSGD to verified transactions, minimizing the risk of fraudulent activities.
The Future of Purpose Bound Money
Several industry pilots under MAS’ Project Orchid have been exploring the viability of PBM in various commercial scenarios. These pilots include learning accounts, programmable rewards, and eCommerce escrow arrangements, with industry giants like Grab and Fazz playing pivotal roles. The MAS’ whitepaper on a common digital money protocol highlights the collaborative effort in establishing a technical standard for programmable digital Singapore dollars.
Simplifying Blockchain-Enabled Payments
This pilot delves into the potential of XSGD as a programmable digital currency. Its interoperability across various e-wallets and payment systems promises to streamline the purchase of goods and services, reducing barriers to blockchain-enabled payment solutions. The campaign’s outcomes will guide the design and infrastructure selection for PBM, envisioning its role as a globally accepted payment method.
This collaboration marks a significant step in the evolution of payment technologies, promising a more efficient, secure, and inclusive financial landscape for merchants and consumers alike.
