Blockchain payments to transform cross-border transactions

 

In a landmark advancement for financial innovation, KASIKORNBANK (KBank), Orbix Technology and StraitsX have unveiled a revolutionary international payment solution powered by blockchain technology.

 

This groundbreaking collaboration promises to transform cross-border transactions between Thailand and Singapore, marking a significant milestone in Southeast Asian financial integration.
 

 

 

Seamless cross-border transactions

The innovative payment system, showcased at the Singapore FinTech Festival 2024, enables Thai travellers to make instant payments to Singapore merchants through a streamlined process. At the heart of this solution is KBank’s Thai baht e-money on blockchain (Q-money), which allows users to complete transactions by simply scanning QR codes of the merchants in Singapore via Q-money by KBank application.

 

 

This three-way partnership harnesses each organisation’s unique strengths:

• KBank operates Q-money under the regulatory sandbox of the Bank of Thailand. The bank also provides a user-friendly application interface and manages FX rate conversions.
• Orbix Technology provides the robust Quarix blockchain infrastructure that empowers the Q-money by KBank application. Additionally, Quarix seamlessly interoperates with StraitsX’s system.
• StraitsX contributes its XSGD stablecoin, pegged to the Singapore dollar, ensuring stable international transactions

 

 

The solution’s capabilities were demonstrated at the  FinTech Festival 2024 before an audience of industry leaders. Key figures present included KBank’s CEO Ms Kattiya Indaravijaya; Dr Daranee Saeju, assistant governor, Payment Systems Policy and Financial Consumer Protection Group, Bank of Thailand; KBank executive vice president Dr Karin Boonlertvanich; Yarnvith Raksri, managing director of Orbix Technology; and Tianwei Liu, co-founder and CEO of StraitsX.

 

The demonstration illustrated how users can effortlessly pay in Thai baht, with transactions automatically converting to XSGD through blockchain technology.

 

 

 

 

Regulatory progress and future expansion

The solution is currently operating under the regulatory sandbox framework of the Bank of Thailand.

 

Looking ahead, KBank and Orbix Technology plan to enhance the Q-money by KBank application to accommodate foreign tourists in Thailand, enabling real-time QR code payments.

 

The partnership aims to eventually extend this payment capability throughout Southeast Asia. This innovation is currently under review by the Bank of Thailand to operate within the regulatory sandbox.

 

This initiative significantly bolsters the digital economic bridge between Thailand and Singapore, reinforcing Thailand's position as a leader in cross-border payments within ASEAN.
 

 

The collaboration exemplifies the partners' commitment to pioneering financial innovation and improving cross-border transaction efficiency.

 

 

The Singapore FinTech Festival 2024, held from November 6-8,  drew more than 66,000 visitors from 150 countries. This event is a crucial platform for dialogue on governance, innovation, and technology in the financial services sector, particularly as digital transformation reshapes the global economy.

 

The festival provided an ideal backdrop for all three partners to showcase their innovative blockchain payment solution, highlighting the growing importance of seamless digital economic connections in Southeast Asia.