The Monetary Authority of Singapore (MAS) and Bank Negara Malaysia (BNM) have launched a new scheme that aims to boost cross-border commerce by linking the two countries via QR code payments.
The initiative will allow customers of participating financial institutions to make retail payments by scanning NETS QR and DuitNow QR codes. It includes in-person payments through the scanning of physical QR codes displayed by merchants, and online cross-border e-commerce transactions.
Managing Director of the Monetary Authority of Singapore, Mr Ravi Menon, 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.”
With pre-pandemic annual traffic between the two countries averaging 12 million visitors, the payment linkage is expected to provide merchants and consumers with a more seamless means to make and receive payments.
It is part of efforts by both countries to improve the cost, speed, access and transparency of cross-border payments, in line with the ASEAN Payment Connectivity Initiative and the G20 Roadmap for Enhancing Cross-border Payments.
The Singapore-Malaysia collaboration has also been backed up by Network for Electronic Transfers (Singapore) Pte. Ltd (NETS), the Association of Banks in Singapore, Payments Network Malaysia Sdn. Bhd. (PayNet), and participating financial institutions from both countries.
Bank Negara Malaysia Governor, Tan Sri Nor Shamsiah Mohd Yunus, added: “This is a significant step forward in realising the vision of an ASEAN network of fast, efficient and interconnected retail payment systems. 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.”
In the next phase, MAS and BNM plan to expand the payment linkage to enable cross-border account-to-account fund transfers and remittances. This will allow users to make real-time fund transfers between Singapore and Malaysia using just the recipient’s mobile phone number via PayNow and DuitNow. This service is expected to go live by end-2023.
