Bank Negara and PayNet explore cross-border payment systems

KUALA LUMPUR: Bank Negara and Payments Network Malaysia Sdn Bhd are collaborating with international partners on a proof-of-concept to improve the cost and speed of cross-border payments.

The central bank said the proof-of-concept, dubbed Project Nexus, will explore the feasibility of linking the real-time payment systems in Malaysia, Singapore and the euro area.

It said this will enable customers to send and receive cross-border payments instantly and securely.

"The results, expected to be published by end-2022, will inform future development of a global network of real-time payment systems to enable fast and seamless cross-border payments.

"The prototypes developed under the proof-of-concept will not be available for public use at this juncture," said Bank Negara.

Led by the Bank for International Settlements (BIS) Innovation Hub, Project Nexus is closely aligned with the G20 Roadmap for Enhancing Cross-border Payments.

Other international partners in the project are Banca d’Italia, the Monetary Authority of Singapore (MAS) and the Banking Computer Services Pte Ltd (BCS).

According to Bank Negara, Malaysia’s participation in Project Nexus complements the country’s existing efforts in linking the RPP/DuitNow2 with other real-time payment systems in the Asean region.

“Our participation in Project Nexus underscores Malaysia’s commitment to future-proof the country’s key payment infrastructures.

"Building on the success of bilateral payment linkages with other Asean countries, this could pave the way for the RPP/DuitNow to connect with other real-time payment systems globally.

"This will support aspirations for faster, cheaper and more accessible cross-border payments for Malaysian residents," said Bank Negara assistant governor Fraziali Ismail .

PayNet group CEO Peter Schiesser added that RPP/DuitNow is a key infrastructure to drive cashless payments and digitalisation in Malaysia.

He said about one billion real-time payments is projected to be made in Malaysia in 2021.

"Project Nexus provides us with a unique opportunity to contribute to the design of next-generation payment infrastructure.

"This will ensure Malaysia is well placed to capitalise on the outcomes of the project,” he added.
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