New Deal Allows Australians to Make Use of Digital Payments

Crypto.com and Australian fintech company DataMesh announced the first scalable payments solution under a new partnership to allow everyday payments via crypto.

The collaboration is set to allow digital payments for some outlet purchases in Australia without the need to convert the funds into fiat. However, notably, the securities watchdog had also raised fresh warnings around large crypto ownership and lack of regulations just last week.

Partnership on back of building domestic demand 

The partnership between Crypto.com and DataMes reportedly comes on the back of increased retail and institutional demand.

The release underlined that “customers holding a Crypto.com wallet can purchase everyday items, such as petrol, coffee and sandwiches across 175 OTR fuel and convenience store sites across Victoria, South Australia and Western Australia using their cryptocurrency – by simply using the Crypto.com App to scan a QR code on their phone.”

Meanwhile, Peregrine Corp, the owner of OTR stations, plans to expand the capability to another 250 retail sites across the country, including in some Krispy Kreme stores.

Karl Mohan, General Manager Asia & Pacific of Melbourne-based Crypto.com, stated that Australia is primed for a cryptocurrency revolution, adding, “Our latest research shows that 55% of both merchants and consumers want to transact in crypto and this innovation within OTR stores is bringing these ambitions to life and ensuring that Australia is at the forefront of crypto payments evolution,”

The firms cited a survey by independent research company PureProfile that outlines the demand and obstacles of cryptocurrency as a daily payment solution. As per the survey, within a year, one-third of merchants say they are or will be prepared to accept cryptocurrency payments, while 60% would be ready within three years.

Chief Executive Officer of DataMesh Group, Mark Nagy, said “We know merchants are looking at many alternative payment instruments including crypto as an opportunity to diversify their payment streams and attract new customers, which is why we are determined to deliver integrated processing capabilities that will make crypto payments fast and accessible for all involved.”

Meanwhile, the Australian securities watchdog stated last week that crypto ownership in the country is a “strong case for regulation”.

ASIC continues to push for regulations 

A survey of 1,053 individual investors conducted in November by the Australian Securities and Investments Commission (ASIC) found that crypto came right after the equity asset class in the domestic market as the most popular investment option.

Out of the 44% of retail investors who held crypto, around 25% held it as their only investment, the researchers noted. But interestingly, ASIC emphasized that more people resorted to YouTube videos and other social media platforms for information. Essentially choosing influencers over expert financial advisors to make these digital investment decisions.

ASIC Chair Joe Longo had said, “With so many new investors active in financial markets, the research builds on our understanding of retail investors and helps us consider where our regulatory efforts are warranted.”

That said, a one-year research project into the benefits and drawbacks of a central bank digital currency (CBDC) was also previously announced by the Reserve Bank of Australia (RBA).

For Be[In]Crypto’s latest Bitcoin (BTC) analysis, click here.