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Sunday, September 25, 2022
HomeNewsCross border payment between Malaysia and Indonesia now made easier and more...

Cross border payment between Malaysia and Indonesia now made easier and more efficient with QR payment

Bank Negara Malaysia (BNM) and Bank Indonesia (BI) have jointly announced a cross-border QR payment linkage that will enable instant, secure, and efficient cross-border payments between Malaysia and Indonesia.

The feature is currently in the pilot phase and it is expected to be launched commercially in the third quarter of this year.

Through this linkage, consumers in both countries will be able to make retail payments by scanning Malaysia’s DuitNow or Indonesia’s QRIS (Quick Response Code Indonesian Standard) QR codes displayed by offline and online merchants.

The linkage will later be expanded to support cross-border remittance, where users in both countries can make real-time fund transfers with convenience.

In a statement, BNM deputy governor Jessica Chew Cheng Lian said the cross-border QR payment linkage between Malaysia and Indonesia marks a key milestone in the long history of collaboration between both countries.

“Phase 2 of the QR payment linkage between Malaysia and Thailand has also gone live this week. Such developments will bring us closer towards realising the vision of creating an Asean network of fast and efficient retail payment systems. This in turn, will further accelerate our digital transformation and financial integration for the benefit of individuals and businesses.”

In addition, BI deputy governor Doni P Joewono said this initiative links cross-border payments through the interconnection of national QR codes of the two countries and also represents another milestone of the Indonesian Payment System Blueprint 2025. Bank Indonesia recognises the significance of cross-border payment system linkages and has continuously pursued such initiatives.

Meanwhile, transaction costs for the currency exchange should be lower as the linkage uses exchange rates provided by Appointed Cross Currency Dealer (ACCD) banks under the Local Currency Settlement (LCS) Framework.

This project is made possible with the collaboration of various stakeholders from both countries under the joint stewardship of BNM and BI, including Payments Network Malaysia Sdn Bhd (PayNet), the Indonesian Payment System Association (ASPI) and RAJA (Rintis, Artajasa, Jalin, and Alto) as payment system operators.

The settlement banks are CIMB Bank Bhd, Bank Mandiri and Bank Negara Indonesia. Other participants include various banks and non-bank payment service providers from both countries.

Malaysia and Thailand also have the same arrangement, as Phase 2 of the QR payment linkage officially commenced this week, enabling consumers from the two countries to make retail payments using each country’s respective national QR codes.

Meanwhile, BNM and the Monetary Authority of Singapore (MAS) have also revealed plans to link DuitNow with Singapore’s PayNow in the fourth quarter of 2022.

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