Singapore and Malaysia Launch Cross-Border QR Code Payment Function

The cross-border QR code payment linkage between Singapore and Malaysia is now live, allowing customers of participating financial institutions to scan the QR codes of NETS and DuitNow to make payments.

The QR codes displayed by merchants can be used to make on-site payments or conduct online cross-border e-commerce transactions.

The partnership was actively driven and made possible by industry players in Singapore and Malaysia, including Network for Electronic Transfers (NETS), the Association of Banks in Singapore, Payments Network Malaysia (PayNet), and participating financial institutions from both countries.

In the next phase, the Monetary Authority of Singapore (MAS) and Bank Negara Malaysia (BNM) plan to expand the payment linkage to enable cross-border account transfers and remittances.

Users will be able to make real-time transfers between Singapore and Malaysia via PayNow and DuitNow as long as they have the recipient's cell phone number. The service is expected to go live by the end of 2023.

Singapore PayNow has also partnered with Thailand's PromptPay, and in February this year also partnered with India. The country also has similar plans for payment cooperation with Indonesia and Philippines.

Central banks in Malaysia, Indonesia, the Philippines, Singapore and Thailand will all be involved in the next phase of the Nexus Project to have a operationally and commercially viable model ready by 2025.

Ravi Menon, Managing Director of the Monetary Authority of Singapore said, “The NETS- DuitNow QR code payment linkage is the latest addition to Singapore’s growing set of cross-border payment linkages. These linkages will help boost cross-border commerce and enable our merchants, especially small businesses to tap on a wider pool of consumers. This QR code linkage between Singapore and Malaysia is an important milestone in ASEAN's journey towards seamless regional payments connectivity.”

Tan Sri Nor Shamsiah Mohd Yunus, Governor of Bank Negara Malaysia said, "The QR linkage between Malaysia and Singapore will benefit millions of commuters across the Causeway as well as business and leisure travellers. It will also be a boost to retail businesses in both countries. We will continue to work closely with our partners to accelerate our digitalisation agenda towards increased regional economic and financial integration."

(Source: Fintechnews Singapore)