Malaysia, Singapore Launch Cross-Border QR Code Payment

Singapore and Malaysia Expanding Cross-Border Financial Integration With QR Code Payment Linkage

The Monetary Authority of Singapore (MAS) and Bank Negara Malaysia (BNM) have launched a cross-border QR code payment linkage between Singapore and Malaysia. This innovative system allows customers of participating financial institutions to conveniently make retail payments by scanning NETS QR and DuitNow QR codes. Consumers can make the transaction both in-person and online.

 

Initiative to Help Both Countries

This collaboration represents a significant milestone in enhancing cross-border payments connectivity between Malaysia and Singapore. The move is seen to benefit merchants and consumers alike. With an average of 12 million annual visitors traveling between the two countries, the financial integration offers a seamless solution for making and receiving payments.

The initiative also aligns with the The Association of Southeast Asian Nations (ASEAN) Payment Connectivity Initiative and the G20 Roadmap for Enhancing Cross-border Payments. Thus, it demonstrates a shared commitment to improving the speed, cost, accessibility, and transparency of cross-border transactions.

The strong partnership of industry players from both nations, including NETS, the Association of Banks in Singapore, PayNet, and participating financial institutions, has made this cross-border QR code payment linkage possible.

 

Plans for the Future

Looking ahead, MAS and BNM have plans to expand the service to enable real-time cross-border account-to-account fund transfers and remittances, simplifying the process for users who can conveniently initiate transfers using just the recipient’s mobile phone number via PayNow and DuitNow. This expanded service is set to go live by the end of 2023.

Mr Ravi Menon, Managing Director of MAS, highlighted the importance of this QR code payment linkage for Singapore’s cross-border commerce and the opportunities it creates for merchants, particularly small businesses, to access a broader consumer base. Bank Negara Malaysia Governor Tan Sri Nor Shamsiah Mohd Yunus emphasized the significance of this step towards realizing an ASEAN network of fast, efficient, and interconnected retail payment systems.

 

Opening Doors for Financial Integration

The QR linkage between Malaysia and Singapore will greatly benefit commuters, business and leisure travelers, and retail businesses in both countries. The two central banks’ ongoing collaboration and digitisation efforts aim to promote regional economic and financial integration further.

 

Starting a Company in Singapore?

The cross-border QR code payment linkage between Singapore and Malaysia presents valuable opportunities for investors starting a company in Malaysia. It streamlines transactions, enhances financial efficiency, and strengthens economic ties, offering a favourable investment environment for seamless cross-border business operations and growth.