The central banks of Singapore
and Malaysia on Friday launched a unified Quick Response (QR) code to power cross-border retail payments between both countries. The code was created
by linking Malaysia’s national QR code solution, DuitNow QR, with the NETS QR code operated by Singapore’s Network for Electronic Transfers Singapore Pte. Limited
(NETS).
Usage of the code is currently
limited to customers of financial institutions that participated in the
linkage, Bank Negara Malaysia (BNM), Malaysia’s central banker, announced on Friday without disclosing the participating institutions.
However, the apex authority listed industry players such as the Payments
Network Malaysia Sdn. Bhd (PayNet), NETS, and the Association of Banks in
Singapore, as industry players involved in the linkage.
The unified code will also
permit in-person payments via scanning of physical QR codes of merchants to
make payments between both countries. The code will also support online
cross-border e-commerce transactions, the Malaysian top financial regulator said.
Speaking on the launch, BNM
noted that the linkage will boost cross-border payments connectivity between Singapore and Malaysia.
“With pre-pandemic annual
traffic between the two countries averaging 12 million visitors, the payment
linkage will provide merchants and consumers with a more seamless and efficient
means to make and receive payments,” BNM explained.
The apex financial regulator
further explained that the initiative proves both countries’ dedication to improving the cost, speed and transparency of their cross-border payments
in line with the Association of Southeast Asian Nations (ASEAN) Payment
Connectivity Initiative and the G20 Roadmap for Enhancing Cross-border
Payments.
According to BNM, the central
bankers intend to extend the cross-border payment to account-to-account fund
transfers and remittances in order to empower users to make “real-time fund transfers”
between both countries. This feature will be designed to make cross-border fund transfer possible with only the recipient’s mobile phone number, the Malayasia regulator noted, adding that it expects to complete this expansion by the end
of this year.
“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,” explained Tan Yunus, BNM’s Governor.
The central banks of Singapore
and Malaysia on Friday launched a unified Quick Response (QR) code to power cross-border retail payments between both countries. The code was created
by linking Malaysia’s national QR code solution, DuitNow QR, with the NETS QR code operated by Singapore’s Network for Electronic Transfers Singapore Pte. Limited
(NETS).
Usage of the code is currently
limited to customers of financial institutions that participated in the
linkage, Bank Negara Malaysia (BNM), Malaysia’s central banker, announced on Friday without disclosing the participating institutions.
However, the apex authority listed industry players such as the Payments
Network Malaysia Sdn. Bhd (PayNet), NETS, and the Association of Banks in
Singapore, as industry players involved in the linkage.
The unified code will also
permit in-person payments via scanning of physical QR codes of merchants to
make payments between both countries. The code will also support online
cross-border e-commerce transactions, the Malaysian top financial regulator said.
Speaking on the launch, BNM
noted that the linkage will boost cross-border payments connectivity between Singapore and Malaysia.
“With pre-pandemic annual
traffic between the two countries averaging 12 million visitors, the payment
linkage will provide merchants and consumers with a more seamless and efficient
means to make and receive payments,” BNM explained.
The apex financial regulator
further explained that the initiative proves both countries’ dedication to improving the cost, speed and transparency of their cross-border payments
in line with the Association of Southeast Asian Nations (ASEAN) Payment
Connectivity Initiative and the G20 Roadmap for Enhancing Cross-border
Payments.
According to BNM, the central
bankers intend to extend the cross-border payment to account-to-account fund
transfers and remittances in order to empower users to make “real-time fund transfers”
between both countries. This feature will be designed to make cross-border fund transfer possible with only the recipient’s mobile phone number, the Malayasia regulator noted, adding that it expects to complete this expansion by the end
of this year.
“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,” explained Tan Yunus, BNM’s Governor.