The central banks of Singapore and Malaysia introduced a unified Quick Response QR code to enable retail payments from one nation to the other.
Malaysia’s central bank, Bank Negara Malaysia (BNM), has established a link between the country’s national QR code solution, DuitNow QR, and Singapore’s Network for Electronic Transfers Singapore Pte. Limited (NETS) to create a unified code.
Customers of certain financial institutions, such as Payments Network Malaysia Sdn. Bhd (PayNet) and the Association of Banks in Singapore, are able to use this code to make payments between both countries. It can be used to make in-person payments via scanning QR codes of merchants, as well as for online cross-border e-commerce transactions.
BNM, said:
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.
The primary financial regulatory body declared that this development showcases the commitment of both countries to make cross-border payments more efficient, quicker, and more transparent.
This is part of the Association of Southeast Asian Nations (ASEAN) Payment Connectivity Initiative and the G20 Roadmap to Enhance Cross-border Payments. The two central bankers are aiming to extend the cross-border payment system to include account-to-account transfers and remittances.
This will permit users to make “real-time” fund transfers between both countries with only the recipient’s mobile number. The Malaysian regulator stated that they expect to complete this task by the end of 2020. The QR system connecting Malaysia and Singapore is going to be beneficial to millions of people traveling across the Causeway, as well as those traveling for business or leisure.
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