Asian consumers are actively trading cryptocurrency and using them to pay for goods and services.
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Asia is leading the world in cryptocurrency investments as Central and Southeast Asia accounted for a third of NFT sales in the $22 billion trade last year. Asian consumers are actively trading cryptocurrency and using them to pay for goods and services, meanwhile retailers are utilizing blockchain in their retail operations. The cryptocurrency transaction value is expected to surpass $16 billion in 2023, prompting 75% of retailers getting ready to accept the new currency.
The spending power and rising income of individuals are expanding in the region. With nearly 700 million residents, Southeast Asia has one of the world’s fastest-growing populations; 440 million people are active internet users and more are going online. The tech-savvy youths are willing to try new things, thus embracing cryptocurrency after witnessing the many incentives to participate – such as Play-to-Earn GameFi schemes. Even for the wealthy, virtual assets including cryptocurrency funds, NFTs and stablecoins now make up to seven percent of an investor’s portfolio, making it the fifth largest asset class. Asian consumers are ravenous for faster, safer, and more hassle-free payment options – something which cryptocurrencies can offer and retailers will have to conform to.
Shopping with Crypto
Cryptocurrency as an alternative payment method are increasingly being accepted by retailers looking … [+]
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Today more than 18,000 companies accept cryptocurrency as payment for their product or services. Naturally, cryptocurrency trading has boosted the wealth of young tech-savvy individuals, with brands now paying attention to attract this new group of affluent consumers – and it’s no surprise as 52% of investors in Asia are putting their bets into crypto. Most notable for their Web3 efforts, Gucci has also begun to accept cryptocurrency payments from BitcoinBTC
to DogecoinDOGE
. Customers receive a QR code for payment which they scan to pay through their digital wallet. Fueled by the prevalence of cryptocurrency use, Gucci is now providing cryptocurrency and NFT training to its staff members.
But it’s not just in luxury, cryptocurrency is now beginning to be offered in everyday retail experiences alongside cash and credit. A wide range of retailers from sneakerhead marketplace Novelship, to shoes and handbag label Charles and Kieth and global coffee chain StarbucksSBUX
to name a few, are now accepting cryptocurrency for commercial transactions, allowing consumers to pay directly with their digital wallets. Charles & Keith saw Singapore customers make up 70 percent of cryptocurrency transactions on its site. This benefits those who own cryptocurrency and might be seeking additional channels on where they can purchase goods and services using their investments.
Accepting Alternative Payments
Asians adopted digital payments over Covid-19, spurred by contactless payments and consumption vouchers, and have discovered a newfound love for digital payments amongst QR code payments, digital wallets, BNPL (Buy Now Pay Later), and even biometric payments. Retailers favor this for the low commission rates and convenience. A quarter of Asia consumers are cross-border shoppers, whether online or through physical travel; cryptocurrency has enabled a more seamless, global, and interoperable payment solution no matter where they are in the world.
Hong Kong’s largest mall operators such as New World Development’s K11 Musea, Times Square and Harbour City have also been celebrating innovative digital collectibles …….