Bank Negara, Bank Indonesia launch cross-border QR payment linkage

  • Banking
  • Thursday, 27 Jan 2022

Bank Negara deputy governor Jessica Chew Cheng Lian

KUALA LUMPUR: Bank Negara and Bank Indonesia (BI) have launched a cross-border QR payment linkage.

In a joint statement, the central bank said the move would enable instant, secure, and efficient cross-border payments between Malaysia and Indonesia.

Through this linkage, consumers in both countries will be able to make retail payments by scanning the DuitNow or QRIS (Quick Response Code Indonesian Standard) QR codes displayed by offline and online merchants.

“Today marks the beginning of a pilot phase that will pave the way for a full commercial launch in the third quarter of 2022. This linkage will be expanded in the future to support cross-border remittance where users in both countries can make real-time fund transfers with convenience,” Bank Negara said.

Bank Negara deputy governor Jessica Chew Cheng Lian said the cross-border QR payment linkage between Malaysia and Indonesia marked a key milestone in the long history of collaboration between both countries.

“Phase 2 of the QR payment linkage between Malaysia and Thailand has also gone live this week. Such developments will bring us closer towards realising the vision of creating an Asean network of fast and efficient retail payment systems. This in turn will further accelerate our digital transformation and financial integration, for the benefit of individuals and businesses,” she said.

Meanwhile, Bank Indonesia deputy governorDoni P. Joewono said this initiative linked cross-border payments through the interconnection of national QR codes of the two countries and also represented another milestone of the Indonesian Payment System Blueprint 2025.

“Bank Indonesia recognises the significance of cross-border payment system linkages and has continuously pursued such initiatives.

“This will give more options for users in the cross-border payment space and serve as a key to improve transaction efficiency, support the digitalisation of trade and investment, and maintain macroeconomic stability by promoting a more extensive use of Local Currency Settlement (LCS) Framework/

“Through the use of direct quotation of local currency exchange rates provided by Appointed Cross Currency Dealer (ACCD) banks under the LCS Framework, it will improve the efficiency of transactions, thus lowering the transaction cost,” he said.

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