8th May 2023 - 3 min read
Bank Negara Malaysia (BNM) has announced the commercial launch of the cross-border QR payment linkage between Malaysia and Indonesia, following a successful pilot that took place since early 2022. With this, Malaysians and Indonesians will be able to conveniently make instant retail payments via QR codes at more avenues and merchants when visiting each other’s country.
“The commercial launch of this linkage sees the number of participating financial institutions, which include non-banks, increase. This will enable more Indonesians and Malaysians to make instant retail payments in either country by scanning Quick Response Code Indonesian Standard (QRIS) or DuitNow QR codes at physical stores or online merchants using services offered by participating financial institutions,” said BNM in a joint statement.
For context, the Quick Response Code Indonesian Standard (QRIS) is Indonesia’s equivalent of our DuitNow QR – a national standard QR code that allows merchants to accept payments from customers regardless of which bank or payment system providers they use.
Meanwhile, local financial institutions that have thus far enabled cross-border QR payments in Indonesia include Hong Leong Bank, Public Bank, Maybank, as well as Touch ‘n Go (TNG) eWallet. Similarly, participating financial institutions from Indonesia that have done so as well include Bank Sinarmas, Bank Permata, LinkAja, and Ottocash. You can find the full list here.
“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. This in turn has significant potential to boost economic activities, including tourism spending in our two countries. The payment linkage will also help expand markets for some businesses and facilitate increased settlements in local currency, thereby improving financial outcomes,” said the governor of BNM, Tan Sri Nor Shamsiah Mohd Yunus.
Tan Sri Nor Shamsiah also commented that this linkage will contribute to the ASEAN region’s development as a centre of growth, alongside other bilateral payment linkages within ASEAN that are currently being established.
Meanwhile, the governor of Bank Indonesia (BI), Perry Warjiyo stressed that the commercial launch of the Indonesia-Malaysia cross-border QR payment linkage will especially benefit micro, small, and medium enterprises (SMEs and MSMEs). This is especially through the promotion of faster, cheaper, more transparent, and more inclusive cross-border payments.
“The QR payment linkage will strengthen the close economic ties between Indonesia and Malaysia. It would support a more inclusive and stronger post-pandemic economic recovery. As international travel gathers momentum, the payment linkage is expected to not only provide travellers with greater convenience, but also benefit the tourism and retail sector of both economies,” said Warjiyo.
BNM and BI first announced the pilot phase of the Indonesia-Malaysia cross-border QR payment linkage back in January 2022. At that time, the commercial launch was scheduled for the third quarter of 2022, with subsequent plans to expand the linkage to support cross-border remittances as well.
(Source: BNM)
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