Malaysia’s BNM, Singapore’s MAS Enable Cross-Border QR Payments
by: The Beat Asia
April 04, 2023
Bank Negara Malaysia (BNM) has partnered with the Monetary Authority of Singapore (MAS) to enable retail payments among participating financial institutions by using QR codes.
In a report by Technode Global, the Malaysian central bank said the joint cooperation’s mission is to make financial exchanges much easier, especially among the millions that cross the border to Singapore and vice-versa. “It will support in-person payments through the scanning of physical QR codes displayed by merchants, and online cross-border e-commerce transactions,” the institution said.
This comes amidst the wider adoption of e-wallets in Malaysia, with the average monthly usage frequency up to 16.8 times in 2022 from 10.5 times in March 2020, according to PayNet. BNM Governor Nor Shamsiah Mohd Yunus also added that the program aims beyond the convenience of tourists.
“The QR linkage between Malaysia and Singapore will benefit millions of commuters across the Causeway as well as business and leisure travelers. It will also be a boost to retail businesses in both countries. We will continue to work closely with our partners to accelerate our digitalization agenda towards increased regional economic and financial integration,” said the central bank head.
The cooperation’s next step is to tackle the more traditional banking functions, such as fund transfers and remittances via DuitNow and PayNow. The impending payment linkage is bound for public release by the end of 2023.
A similar coalition between Malaysia and Indonesia launched in January 2022, with much of the same goals as travel between the two countries started to flow again.
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