Indonesia, Malaysia launch cross-border payment linkage

Bank Negara Malaysia (BNM) and Bank Indonesia (BI) have announced the commercial launch of the Indonesia-Malaysia cross-border quick response code payment linkage.(Photo: thestar.com.my)

Jakarta (VNA) - Bank Negara Malaysia (BNM) and Bank Indonesia (BI) on May 8 announced the commercial launch of the Indonesia-Malaysia cross-border quick response (QR) code payment linkage.

The launch follows the successful completion of the pilot phase of the linkage announced on January 27 last year the central banks said in a joint statement.

The linkage enables Indonesians and Malaysians to make instant retail payments in both countries by scanning the Quick Response Code Indonesian Standard (QRIS) or DuitNow.

BI Governor Perry Warjiyo said the cross-border QR payment linkage between Indonesia and Malaysia is concrete evidence of strengthened cooperation on Regional Payment Connectivity to promote faster, cheaper, more transparent and more inclusive cross-border payments, particularly for the benefits of micro, small and medium enterprises.

He went on to say that the linkage aligns with the G20 initiative in establishing the Roadmap for Enhancing Cross Border Payments, and serves as a significant deliverable of Indonesia’s chairmanship of the ASEAN in 2023, while representing another milestone for the Indonesian Payment System Blueprint 2025.

Warjiyo also said the development provides more options for users in cross-border payment transactions and serves as a key to improve efficiency and promote digital economy and financial inclusion in the region.

BNM Governor, Nor Shamsiah Mohd Yunus said 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.

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 and further development of the region as a centre of growth, she added./.