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Malaysia, Indonesia launch cross-border QR payment linkage
KUALA LUMPUR: Bank Negara Malaysia (BNM) and Bank Indonesia (BI) has announced the commercial launch of the Indonesia-Malaysia cross-border quick response (QR) code payment linkage.
The linkage enables Indonesians and Malaysians to make instant retail payments in both countries by scanning the Quick Response Code Indonesian Standard (QRIS) or DuitNow.
The launch follows the successful completion of the pilot phase of the linkage announced on Jan 27, 2022, the central banks said in a joint statement today.
BNM Governor, Tan Sri Nor Shamsiah Mohd Yunus said the linkage offers significant potential to boost economic activities, including tourism spending in the two countries.
“The payment linkage will also help expand markets for some businesses and facilitate increased settlements in local currency, thereby improving financial outcomes.
“ASEAN is more connected now than ever. Many more users from Malaysia and Indonesia will benefit from a secure, more seamless and more efficient experience to make and receive cross-border payments,” she said.
She added that the QR payment linkage between Malaysia and Indonesia complements a growing network of bilateral payment linkages within ASEAN that will contribute towards a more vibrant ASEAN and further development of the region as a centre of growth.
BI Governor, Perry Warjiyo said the cross-border QR payment linkage between Indonesia and Malaysia is concrete evidence of strengthened cooperation on Regional Payment Connectivity to promote faster, cheaper, more transparent and more inclusive cross-border payments, particularly for the benefits of micro, small and medium enterprises.
“The linkage aligns with the G20 initiative in establishing the Roadmap for Enhancing Cross Border Payments, and serves as a significant deliverable of Indonesia’s chairmanship of the ASEAN in 2023, while representing another milestone for the Indonesian Payment System Blueprint 2025,” he added.
Warjiyo also said the development provides more options for users in cross-border payment transactions and serves as a key to improve efficiency and promote digital economy and financial inclusion in the region.
“It would also maintain macroeconomic stability by promoting more extensive use of local currency for bilateral transactions under the Local Currency Transaction Framework,” he said.
The QR payment linkage would strengthen the close economic ties between Indonesia and Malaysia, and at the same time support a more inclusive and stronger post-pandemic economic recovery.
The successful launch of the payment linkage is a result of close industry collaboration championed by BI and BNM, working closely with the Indonesian Payment System Association (including its member payment system operators in Indonesia), PayNet, and participating financial institutions.
In the statement, the central banks also welcome participation from more financial institutions to further expand the cross-border payments ecosystem. – Bernama