Shanghai-based online travel powerhouse Trip.com has begun accepting stablecoin payments, allowing select international users to pay for prepaid hotels and flights using USDT (Tether) and USDC (USD Coin). This development signals a significant step towards the integration of digital currencies into the mainstream global travel industry.
A Landmark Move in Travel Tech
The new payment option was enabled on October 9 for users in certain regions booking through Trip.com’s international platform. The feature is geo-restricted based on a user’s IP address and is notably unavailable to customers in mainland China and Hong Kong, reflecting the complex regulatory landscape the company navigates.
This strategic move comes as Beijing maintains its stringent restrictions on cryptocurrency activities within mainland China. The People’s Bank of China has previously stated that stablecoins do not meet the country’s anti-money-laundering requirements.
The Rising Tide of Stablecoin Adoption
Trip.com’s decision aligns with a rapidly growing global trend of using stablecoins for payments and settlements. According to blockchain analytics firm Artemis, over US$10 billion in stablecoins were used for payments in August alone, more than doubling the US$4.3 billion recorded in the same month a year prior.
While business-to-business transfers constitute the bulk of this volume, the entry of a major consumer-facing platform like Trip.com could accelerate retail adoption significantly. The move was first highlighted by Chinese blockchain news outlet Foresight News, whose reporter successfully booked a hotel and flight in Vietnam using USDT.
Relevance for the MENA Tech Ecosystem
For founders and investors in the MENA region, Trip.com’s integration of stablecoin payments is a trend to watch closely. As a global travel hub with a burgeoning tech-savvy population, MENA presents a fertile ground for similar innovations.
With regulatory sandboxes and a generally progressive stance on digital assets in key markets like the UAE, local travel tech startups and payment gateways could gain a competitive edge by exploring crypto payment solutions. Offering stablecoin payment options could cater to a growing international and local demographic of crypto users, potentially reducing transaction fees and settlement times compared to traditional payment rails. This move by a global leader could act as a catalyst, encouraging regional players to accelerate their own Web3 strategies.
About Trip.com
Trip.com Group is a leading global travel service provider comprising Trip.com, Ctrip, Skyscanner, and Qunar. Across its platforms, Trip.com Group helps travellers around the world make informed and cost-effective bookings for travel products and services. The company enables partners to connect their offerings with users through the aggregation of comprehensive travel-related content and resources, and an advanced transaction platform consisting of apps, websites and 24/7 customer service centers.
Source: Tech in Asia
