Radhika Parashar
- VGS has partnered FOMO Pay to process crypto payments
- The car-maker and distributor wishes to expand its payment options owing to customer demands
- Over 26 percent of Singapore residents now hold digital assets
As the legislative overhaul around crypto intensifies globally, more corporations are taking steps to adopt the next generation of finance. In a fresh development, Volkswagen Group Singapore (VGS) said it has enabled crypto payments for car purchases. Crypto assets like Bitcoin, Ether, and stablecoins like USDT and USDC can now be used to pay for Volkswagen cars in Singapore.
In its announcement, VGS noted that 26 percent residents of Singapore now hold digital assets. It added that the demand for faster and more cost-effective payment solutions has risen significantly in the country. With crypto payments, customers are looking to tap into reduced transaction costs and global interoperability of currencies that lack traditional payment methods.
“As the authorised distributor of brands such as Volkswagen, Škoda, and CUPRA, this latest move reflects VGS’s commitment to offering consumers more flexible and future-ready ways to engage with the group’s brands,” the company said in its statement.
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VGS has set transaction limits on Digital Payment Tokens (DPTs), seemingly aimed at combating money laundering. A daily cap of SGD 4,500 prevents customers from making a single, large crypto transaction. Additionally, a total smurfing limit of SGD 13,500 over a specific period is in place to stop individuals from violating the daily cap by splitting a larger amount into multiple smaller transactions.
To process these crypto transactions, the VGS has partnered Singapore-based FOMO Pay. The platform offers a suite of fintech services including crypto-to-fiat conversions.
“We believe digital assets will continue to play an important role in improving customer experience. FOMO Pay is excited to partner Volkswagen Group Singapore in elevating their consumer payment experience,” said Rose Wang, Head of Digital Payments at FOMO Pay, commenting on the development.
In the past, car brands like Ferrari, Aston Martin, and Bentley are among others have also reportedly experimented with crypto payments.
