MAS and BNM launched a new cross-border payment interface between Singapore and Malaysia.
The Monetary Authority of Singapore (MAS) and Bank Negara Malaysia (BNM) have collaborated to launch a QR code-based, cross-border payment interface between the two countries of Singapore and Malaysia.
Customers of participating financial institutions will be able to make retail payments by scanning the QR codes of the Malaysian financial institution DuitNow and/or Singapore’s Network for Electronic Transfers (NETS) thanks to the payment linkage between MAS and BNM.
QR codes can also be used in-store or online to support cross-border e-commerce.
The financial connectivity lets enterprises and customers send and receive payments easily since pre-pandemic annual traffic between the two nations averaged 12 million.
This promotes cross-border payment cost, speed, and access improvements in line with the ASEAN payment connection initiative and G20 plan.
The Association of Banks in Singapore and Payments Network (PayNet) Malaysia collaborated to enable cross-border QR code payment connection.
Next steps: peer-to-peer fund transfers
MAS and BNM will expand the payment connection to enable cross-border account-to-account financial transfers and remittances.
PayNow and DuitNow enable real-time money transfers between Singapore and Malaysia using the recipient’s mobile phone number. This service will launch in 2023.
MAS managing director Ravi Menon said the NETS-DuitNow QR code payment linkage is Singapore’s latest international payment linkage.
These linkages will boost international trade and help our businesses, especially small ones, reach more customers.
Menon concludes, “This QR code linkage between Malaysia and Singapore is a significant step in ASEAN’s journey towards seamless regional payments connectivity.”
“This is a significant step toward realizing the vision of an ASEAN network of fast, efficient, and interconnected retail payment systems,” says BNM governor Tan Sri Nor Shamsiah Mohd Yunus.
The QR link between Malaysia and Singapore will assist millions of Causeway commuters, business, and vacation travelers. It also benefits retail in both countries.
“We will continue working with our partners to advance our digitalization agenda and achieve regional financial and economic integration.”