Singapore-based payment gateway Coda Payments has announced a partnership with BitX to enable Bitcoin transactions between merchants and customers in Southeast Asia — Indonesia, Malaysia, the Philippines, Thailand, Vietnam and Singapore.
Bitcoin is already available to customers in Indonesia and Malaysia on Codashop, Coda’s own online gift card and game voucher distribution platform.
BitX provides real-time price conversion from the user’s local currency to Bitcoin and back. This allows merchants to accept Bitcoin without having to establish pricing: they can file charge requests in local currency and get paid in local currency.
The partnership with BitX will allow Coda to focus on merchant acquisition, integration and settlement.
Neil Davidson, CEO of Coda, believes the low transaction fees and universal accessibility of Bitcoin will make it an attractive option for merchants.
“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,” Davidson said.
Bitcoin will be Coda’s fifth payment channel. The other four are Direct Carrier Billing, which allows users in Indonesia and Malaysia to pay using their telecom providers — Telkomsel and Maxis, cash payments at retail outlets, bank transfers and voucher redemption.
This latest development is another sign that we might soon see a boom in the digital currency space in Southeast Asia.
Just two weeks ago, e27 reported that BitX raised US$4 million in a Series A round led by Naspers Group. And only two days ago, we also reported that another Singapore-based Bitcoin company, Coin Republic, was acquired by Mexico-based digital currencies platform MeXBT for an undisclosed amount.