Last month, both Thailand and Vietnam launched new initiatives focused on experimenting with cryptocurrency for inbound tourism payments. Though still at the launch stage, these developments show how some countries are considering alternative rails to cash and cards for inbound cross-border payments, as we explore more below. 

Thailand is set to launch an 18-month pilot programme, under which foreign visitors will be able to use licensed exchanges to convert cryptocurrencies into baht and make payments locally, without first having to convert into USD or EUR. Under the scheme, tourists are able to convert crypto into baht wallets with a cap at 550,000 baht (around $17,000). According to Reuters, Thailand’s Finance Minister said that the initiative could help increase tourism spending in the country (which has seen declining figures for foreign arrivals).

Similarly, Da Nang – one of Vietnam’s largest cities – has approved the addition of Basal Pay, a crypto QR wallet for foreign travellers, to its fintech sandbox environment. The initiative could potentially reduce the costs of FX conversion compared to traditional methods.

Elsewhere, other countries are focusing more on partnership-led approaches. Bhutan announced a partnership with Binance in May to launch the world’s first national crypto tourism payments system, with travellers now able to make crypto payments to more than 100 merchants, spanning flight tickets, visas and local retailers. Meanwhile, the UAE has seen several airlines, including Emirates and Air Arabia, adopt crypto payments acceptance. 

These launches and agreements are still in the early stages, with cash and cards highly likely to remain the dominant payments rail for inbound tourists in these countries for the time being. However, the focus on tourists as a testing ground for crypto highlights that countries are responding to a demand for more tailored, convenient payment methods for cross-border transactions in the APAC region and beyond. We’ve also seen this from multiple bilateral real-time payments agreements across Southeast Asia, as well as efforts to enable both tourists and outbound Indian travellers to use India’s UPI wallets to make payments globally. 

How much does it cost to make cross-border card transactions?

Joe Baker

LinkedIn

Joe is Principal Editorial Analyst at FXC Intelligence, writing and editing reports, news and analysis to support the company’s weekly content and client projects. Before joining FXC Intelligence, he worked as a B2B copywriter, journalist and editor covering a broad range of topics, including technology, transport, retail and the food and beverage industries. He has a BA in Philosophy from the University of Warwick.