Consumers in Indonesia and Malaysia can now make instant retail payments through a cross-border QR payment linkage launched by Bank Indonesia (BI) and Bank Negara Malaysia (BNM).
BI and BNM officially launched the effort earlier this week after piloting the initiative, which was first announced in Jan. 2022.
The cross-border QR payment linkage is in line with the G20 initiative to enhance cross-border payments and promote faster, cheaper, more transparent, and more inclusive cross-border payments. It’s also in line with Indonesia’s Payment System Blueprint 2025, which includes five “system visions” Bank Indonesia is working towards, such as open banking and financial market infrastructure.
The linkage between Malaysia and Indonesia complements a growing network of bilateral payment linkages within the Association of Southeast Asian Nations (ASEAN) that will contribute to further development of the region as a center of growth.
The QR payment linkage aims to strengthen the close economic ties between Indonesia and Malaysia, as well as expand markets for businesses and facilitate increased settlements in local currency. With international travel picking up, the payment linkage is expected to provide travelers with greater convenience, and ultimately, benefit the tourism and retail sector of both economies.
According to Bank Negara Malaysia Governor Ms. Nor Shamsiah Mohd Yunus:
“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. 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. 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.”
The launch of the cross-border QR payment linkage between Indonesia and Malaysia could potentially inspire other countries in the region to follow suit. It is expected that more cross-border payment linkages will be established in the coming years, further contributing to the development of the payments industry and the region’s economy.
