Singapore Announces Cross Border Payments with Indonesia and Malaysia
By: Asia Business Outlook Team | Saturday, 18 November 2023
On Nov 17, Singapore and Indonesia declared the introduction of a cross-border QR code payment connection. In a joint media release, Bank Indonesia (BI) and the Monetary Authority of Singapore (MAS) announced that the linkage will enable customers of participating financial institutions in both countries to conduct retail payments by scanning QR codes.
MAS and Bank Negara Malaysia (BNM) have collaborated to establish a real-time payment systems connection between Singapore's PayNow and Malaysia's DuitNow. The decision will enable immediate, secure, and affordable transfers of funds between individuals in both countries, as stated in a joint release by MAS and BNM.
Ravi Menon, along with his Indonesian and Malaysian counterparts, launched the links at the Singapore FinTech Festival. A year after BI and MAS announced their plans to link the two countries, the launch of cross-border QR payments between Indonesia and Singapore has finally become a reality.
To make payments, customers simply have to use their existing mobile banking applications to scan QRIS (Quick Response Code Indonesian Standard) or NETS QR codes displayed by merchants in Indonesia and Singapore, respectively.
"This cross-border QR payment linkage is a significant milestone in the efforts by BI and MAS to promote greater integration of the digital economyand financial ecosystem, as well as to boost economic connectivity between Indonesia and Singapore," the central banks said.
"With greater payment convenience, this linkage can enable micro and small businesses to tap into a new pool of customers in each other's economies."