With the backing of billionaire Kwee Liong Tek, this Singapore startup is bringing crypto payments to luxury hotels

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Dtcpay CEO Kanny Lee (right), Pontiac Land Chairman Kwee Liong Tek (middle) and Dtcpay co-founder Alice Liu at the opening ceremony for the startup’s new office on April 26 2023.

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Amid a tough crypto market that has eroded investors’ appetite for highly volatile assets, Singaporean startup Dtcpay has carved out a safe niche for itself facilitating regulated crypto payments to high-end businesses.

Joining the growing list of Dtcpays adopters is one of Singapore’s largest property groups, Pontiac Land, controlled by billionaire Kwee Liong Tek and his family. Dtcpay raised $16.5 million last month in a pre-Series A round led by Pontiac Land president Kwee. The investment will see some of the hotels in Pontiac Lands soon accept crypto payments, says Dtcpay CEO Kanny Lee. It will also allow Dtcpay access to potentially thousands of merchants on Pontiac Lands properties, he adds.

A market thrives when a fire destroys the forest, allowing those who survive to grow back stronger, Lee says in a video interview with the Dtcpays office. We were now at that stage of growth where the market still has demand, especially financial institutions like Dtcpay who are ready to come in and serve those customers.

Dtcpay allows merchants to process fiat and cryptocurrency payments. When customers pay in crypto, Dtcpay will mitigate the volatility of cryptocurrencies by instantly converting them to fiat so merchants can receive the exact amount charged, Lee explains.

Kwees’ personal investment in Dtcpay comes as the crypto industry is still reeling from corporate scandals and meltdowns that have led to an evaporation of around $1.8 trillion in market value; Dtcpay declined to disclose its valuation. A partnership with Dtcpay, however, is compelling because it gives Pontiac Land the opportunity to expand its payment options amid hotel guest demands, says John Tay, director of private investment vehicle Kwees Kwee & Partners.

There is nothing fraudulent about the underlying blockchain technology of cryptocurrencies. In fact, the technology has potentially much broader applications, and the Web3 industry holds promise, Tay says. Many of these fraudulent and negative incidents are largely due to how people misuse technology, intend to commit fraud, and/or attempt to circumvent regulations intended to protect end users, customers and businesses.

Tay says Pontiac Lands Capella Hotel Group will start exploring crypto payments first. Others that involve third-party operators will take some time, he adds.

Dtcpay allows merchants to transact bitcoin, ether, as well as USDT and USDC stablecoins.

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Admittedly, cryptography is still far from being widely adopted. A number of traditional businesses, however, are seeing consumer demand. One of the latest companies to take the plunge is Ralph Lauren, which in April began accepting crypto at its new store in Miami, a crypto hub. Others who have partnered with crypto payment companies range from Google Cloud and Sothebys to the Wong brothers’ Singaporean billionaire fashion company Charles & Keith.

A growing number of companies seeking to work with regulated entities and the surge in adoption of digital payment has boosted Dtcpays business, Lee says. The startup has seen a 250% growth in customers in the first six months, mainly attracting high-end businesses in Singapore like luxury car dealerships and specialist medical clinics, he says.

Dtcpay said it processed more than S$50 million ($37.7 million) in transactions in the first quarter. A comparable figure is not available because the company only obtained a digital asset license in Singapore to offer regulated services last August, Lee says. He estimates that the value of the transaction will see double-digit growth by the end of 2023. The company is looking to expand its presence in Hong Kong this year and enter Dubai next year.

Many merchants see value in using cryptocurrencies for high-value transactions because blockchain network gas fees (transaction fees) are relatively inexpensive, Lee says. Let’s say if you spend $250,000 on a car, then spending $2 on gas costs makes a lot of sense compared to traditional payments that charge 2% to 4% of the total amount.

Formerly known as the Digital Treasures Center, Dtcpay was co-founded in 2019 by Alice Liu and her classmate at the National University of Singapore, Sam Lin. Lee joined Dtcpay in early 2023 to lead its expansion outside of Singapore.

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