Codapay, a Singapore-based alternative payments gateway provider, has partnered with BitX, a bitcoin exchange headquartered in Singapore, to enable merchants to process bitcoin payments in Southeast Asia.
“Given the low penetration of debit and credit cards in the region, we think Bitcoin holds great promise as a way for customers to transact online,” Neil Davidson, CEO of Coda said.
Bitcoin’s international accesbility and low transaction fees will make it much easier for local merchants to accept payments without paying 7 percent to 8 percent fees which they would normally pay in financial platforms such as Paypal.
Furthermore, the integration of BitX’s bitcoin exchange infrastructure would allow merchants to accept bitcoin and get paid in local currency, due to BitX’s real-time price conversion technology.
“Southeast Asia has some tremendous opportunities in the payments space: a very high percentage of smartphone users with huge growth in e-commerce, paired with a very low percentage of cardholders,” the BitX team announced on its blog. “This makes bitcoin a particularly attractive payment method, especially since the merchants enjoy zero risk from chargeback and fraud.”
Including bitcoin, Codapay has five main payment channels: Direct Carrier Billing, bank transfers, voucher redemption and cash payments at retail outlets.
Direct Carrier Billing enables merchants in Indonesia and Malaysia to pay telecom providers such as Telkomsel and Maxis.