Coinhako sees 50% month-on-month processing volume growth for card payments with Checkout.com
Coinhako is a digital assets wallet that makes it easy to buy, sell and secure cryptocurrency. A trailblazer for the crypto-economy in Asia, the start-up was founded in 2014 to improve accessibility to digital assets, including Bitcoin, Ethereum, Litecoin and Ripple. Today, Coinhako serves more than 300,000 customers in Singapore and thousands more across the region.
The end of 2020 saw a significant spike in demand for cryptocurrencies, resulting in a rapidly growing user base and trading volume on the Coinhako platform. Checkout.com, one of the first payment processors in Singapore that worked with cryptocurrency businesses, was ready to support this growth.
Together, Coinhako and Checkout.com are building the foundations of an accessible crypto-economy in Asia.
Enabling faster card payments
Before partnering with Checkout.com, Coinhako facilitated payments for cryptocurrency trading mainly through bank transfers into the Coinhako SGD e-wallet. But relying on a single payment rail was inefficient, especially during high traffic in the cryptocurrency market. The payment channel would often get heavily congested with deposit and withdrawal requests, prolonging the time needed to execute a trade.
By introducing direct support for card payments like Visa and Mastercard with Checkout.com, Coinhako customers now enjoy instant purchases of cryptocurrencies. Coinhako can also improve business efficiency in facilitating payments for its customers - especially during times of high market traffic.
"Card payments have increased the ease of access to cryptocurrencies for our Singapore users and contributed to our growth since the start of 2021," shares Yusho Liu, CEO, and Co-founder of Coinhako. "This has been well-received by customers, with the company seeing a 50% month-on-month processing volume growth for card payments since January 2021," adds Liu.
In addition to greater payment options, Coinhako has one of the highest acceptance rates in the crypto industry. This is because Checkout.com has been proactive in providing data-driven recommendations to optimize performance.
Improving the customer journey
Checkout.com has also been integral to boosting the customer experience. "Payments sit right at the center of the user journey, making it a key area of focus. The intuitive user interface powered by Checkout.com has made payments a smooth experience for customers," explains Liu.
"The larger selection of card payment options allows customers to pick the ones that best fit their individual trading needs," he continues.
Additionally, Checkout.com provides granular transparency on their payments data, which Coinhako leverages to identify and minimize pain points in the customer payment journey.
Better fraud prevention
The Checkout.com team is also instrumental in keeping fraud at bay. By collecting granular data of fraud cases, Coinhako can block identified accounts before any damage is done.
"It’s quite common for merchants in similar industries to see high fraud chargeback rates," shares Liu. "Hence, we really appreciate the proactive, data-centric approach the Checkout.com team takes to help us identify and prevent potential fraud cases."
"The team helped us set up a test-and-trial approach to fraud prevention. Based on the data obtained from this, they can recommend the optimal tweaks to our risk settings to combat fraud effectively while helping us stay compliant."
What’s next for Coinhako?
Coinhako believes this is only the beginning of their journey. They plan to continue leveraging Checkout.com's globally scalable payments technology to unlock the full growth potential of their payment rails. "The next step is to continue implementing features that enhance the customer experience," says Liu. "Making the payment experience seamless for our customers is mission-critical, especially as more people across Asia take an interest in holding and trading crypto."
Payouts are also high on the agenda for Coinhako. "We're working with Checkout.com to understand how we can leverage its best-in-class Payouts product to allow our customers to cash out trades faster without incurring any additional operational complexity of cost," says Liu.
Currently operating in Singapore and Vietnam, Coinhako sets its sights on further regional expansion.
"We’re excited to see what the future has in store for the crypto-economy," says Yusho Liu. "With the wide range of payment options, global acquiring coverage and industry expertise of Checkout.com, we’re confident we’ve chosen the right partner to facilitate greater growth."