Singapore’s financial landscape takes a significant leap forward with the introduction of new cross-border cashless payment and fund transfer services with Indonesia and Malaysia. This development, announced at the Singapore Fintech Festival on Nov 17, marks a crucial step in enhancing the ease of transactions for individuals and businesses across these nations.
QR Code-Based Payments in Indonesia
Account holders of UOB and OCBC banks can now enjoy the convenience of making cashless payments using QR codes in Indonesia. DBS bank customers will also soon be able to access this service. This initiative allows individuals to use their existing mobile banking apps to scan QRIS (Quick Response Code Indonesian Standard) or Nets QR codes at Indonesian and Singaporean merchant locations, respectively, enabling hassle-free retail payments across borders.
Simplifying Singapore-Malaysia Fund Transfers
In a significant move to streamline fund transfers between Singapore and Malaysia, banks have linked Singapore’s PayNow with Malaysia’s DuitNow systems. This integration means users can transfer money effortlessly using just the recipient’s mobile phone number or virtual payment address, bypassing the traditional complexities of international banking details.
Official Launch and Live Demonstration
The launch of these services was commemorated by significant figures in the banking sector. Bank Indonesia Governor Perry Warjiyo and Monetary Authority of Singapore (MAS) Managing Director Ravi Menon jointly introduced the Indonesia linkage. Simultaneously, Bank Negara Malaysia Governor Abdul Rasheed Ghaffour and Mr. Menon demonstrated the PayNow-DuitNow linkage through live cross-border fund transfers at the Singapore Expo.
Participating Banks and Rollout Plans
The PayNow-DuitNow service will initially be available to customers of Liquid Group, Maybank Singapore, OCBC, and UOB in Singapore. These financial institutions plan to gradually expand the user base from Nov 17 through the end of January 2024. This phased approach aims to provide customers ample time to become acquainted with the new service, ensuring a smooth transition to this innovative mode of financial transaction.
In summary, these advancements in cross-border payment systems between Singapore, Indonesia, and Malaysia are set to significantly improve the efficiency of financial transactions in the region. This initiative not only fosters greater economic integration among these countries but also positions Singapore at the forefront of financial technology innovation in Southeast Asia.
Also learn about Singapore Embraces Digital Transformation in Financial Sector.
