PaymentsJournal
No Result
View All Result
SIGN UP
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
PaymentsJournal
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
No Result
View All Result
PaymentsJournal
No Result
View All Result

ASEAN Is an Emerging Leader in Cross-Border Payments 

By Connie Diaz De Teran
July 31, 2023
in Analysts Coverage, Commercial Payments, Cross-border Payments
0
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
cross-border payments

Residents in Indonesia, Singapore, Thailand, and Malaysia can now make payments for goods and services in each other’s countries via a new cross-border payments system. According to CNBC, the recent launch comes months after a memorandum of understanding was signed by members from the ASEAN (Association of Southeast Asian Nations—which includes five Southeast Asian central banks: Malaysia, Thailand, Indonesia, Singapore, and the Philippines. 

The goal is to facilitate and support cross-border trade settlements, remittance, investment, and other economic processes, fostering a more comprehensive financial ecosystem with the Southeast Asian region. 

By establishing regional connectivity, ASEAN is working to reduce reliance on outside currencies—such as the U.S. dollar—to conduct cross-border transactions, especially between businesses. The U.S. dollar’s strength in the last few years has debilitated ASEAN currencies, which negatively impacts these economies, as most of these member countries are food and net energy importers.  

“The system will forgo the U.S. dollar or the Chinese renminbi as intermediary,” Nico Han, a Southeast Asia analyst at Diplomat Risk Intelligence, the consulting and analysis division of current affairs magazine The Diplomat told CNBC. 

At the Forefront of Cross-Border Payments 

The move to streamline cross-border payments between regions in Southeast Asian has been in the works for a while. In April, we covered how the Monetary Authority of Singapore and Bank Negara of Malaysia partnered to develop a new cross-border QR code payment linkage. This signaled a significant step forward to facilitating smoother payments between the countries.  

And this recent push by ASEAN is another clear step forward to a more financially inclusive environment.  

“While a regional play, ASEAN is arguably leading the way for modern-day cross border payments,” said Albert Bodine, Director of Commercial and Enterprise Payments at Javelin Strategy & Research, who covered ASEAN in his upcoming impact note, Commercial Strategies and the Need for Speed.   

“Singapore, Indonesia, Malaysia and Thailand are tying together a very sophisticated, high velocity platform allowing individuals and businesses in those countries to pay and be paid by the same in any of those four countries,” he said. “Interestingly, the card schemes have fired one over the bow suggesting that their existing payments rail is already there and exceeds the capabilities of the ASEAN solution.” 

0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
Tags: ASEAN 5Cross-Border PaymentsIndonesiaMalaysiaQR CodesSingaporeThailand

    Get the Latest News and Insights Delivered Daily

    Subscribe to the PaymentsJournal Newsletter for exclusive insight and data from Javelin Strategy & Research analysts and industry professionals.

    Must Reads

    payment fraud

    From Reaction to Prevention: Rethinking Payment Fraud

    March 5, 2026
    first-party-fraud

    Returns, Disputes, and the Rise of First-Party Fraud

    March 4, 2026
    commercial payments

    From Theory to Application: The Impending Transformation of Commercial Payments

    March 3, 2026
    Payments Modernization, ACH payments

    ACH and the Path Toward Future-Ready Payments

    March 2, 2026
    millennial gen z business owner

    Gen Z and Millennials Are Business Owners: Are Banks Ready?

    February 27, 2026
    google blockchain

    Why Banks Should Follow Fintechs’ Lead on Developer Portals

    February 26, 2026
    credit unions

    Not Just Another Bank: How Credit Unions Can Reach Younger Members

    February 25, 2026
    fraud

    Escalating Scams Demand a Dedicated Response

    February 24, 2026

    Linkedin-in X-twitter
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter

    ©2026 PaymentsJournal.com |  Terms of Use | Privacy Policy

    • Commercial Payments
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    No Result
    View All Result