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Popular automaker rolls out crypto payments for customers
Volkswagen Group Singapore (VGS) has teamed up with FOMO Pay, a major payment company, to let people pay for their cars and services via digital currency. This is the first time an automotive distributor in the city-state has done this.
VGS said it is committed to offering payment options that are ready for the future and flexible, so customers can now use Bitcoin, Ethereum, and stablecoins like USDT and USDC, as per their press release.
VGS, the authorized distributor for Volkswagen, Skoda, and CUPRA, announced on August 14 that the move was in response to rising consumer adoption of digital assets in Singapore, where approximately 26% own cryptocurrencies.
According to reports as of 2024, crypto payment volumes in Singapore reached nearly $1 billion in Q2 2024, marking a surge in everyday transactions.
Despite positive sentiment, challenges such as technical complexity, security concerns, and limited merchant acceptance persist, with 67% of current holders planning to increase usage.
As the demand for faster, more secure, and globally interoperable payment methods grows, the integration of digital payment tokens (DPTs) aims to improve the customer experience by providing speed, convenience, and choice. However, the transactions will be limited to SGD 4,500 per day, with a maximum of SGD 13,500.
FOMO Pay's business-level infrastructure will handle payments safely and give users real-time exchange rates. The solution will allow people to make partial payments on new cars and for services after the sale.
Rose Wang, the head of digital payments at FOMO Pay, said that the partnership fits with Singapore's goal of becoming a top digital economy.
This article has been published in TheStreet via Yahoo News.
