SINGAPORE: Singaporeans can now use NETS in Malaysia as the Monetary Authority of Singapore (MAS) and Bank Negara Malaysia (BNM) jointly launched a cross-border QR code payment linkage system between Singapore and Malaysia today (31 March).
The new payment linkage system will allow customers of participating financial institutions to make retail payments by scanning NETS QR and DuitNow QR codes. The system supports both in-person payments through the scanning of physical QR codes displayed by merchants and online cross-border e-commerce transactions.
The QR linkage is expected to benefit millions of commuters across the Causeway and business and leisure travellers, on top of being a boost to retail businesses in both countries.
MAS and BNM said that the NETS-DuitNow QR code payment linkage is a key milestone in the ongoing collaboration between Singapore and Malaysia to enhance cross-border payments connectivity. With pre-pandemic annual traffic between the two countries averaging 12 million visitors, the payment linkage is expected to provide merchants and consumers with a more seamless and efficient means to make and receive payments.
The financial authorities said that the initiative is a testament to both countries’ commitment to improving the cost, speed, access and transparency of cross-border payments, in line with the ASEAN Payment Connectivity Initiative and the G20 Roadmap for Enhancing Cross-border Payments.
It added that the cross-border QR code payment linkage is made possible through the strong collaboration of various industry players from both countries, including NETS, the Association of Banks in Singapore, Payments Network Malaysia Sdn. Bhd. (PayNet), and participating financial institutions from both countries.
In the next phase, MAS and BNM plan to expand the payment linkage to enable cross-border account-to-account fund transfers and remittances. This will allow users to make real-time fund transfers between Singapore and Malaysia conveniently using just the recipient’s mobile phone number via PayNow and DuitNow.
This service is expected to go live by the end-2023.
MAS Managing Director, Mr Ravi Menon, said, “The NETS-DuitNow QR code payment linkage is the latest addition to Singapore’s growing set of cross-border payment linkages. These linkages will help boost cross-border commerce and enable our merchants, especially small businesses to tap on a wider pool of consumers.”
BNM Governor Tan Sri Nor Shamsiah Mohd Yunussaid said: “This is a significant step forward in realising the vision of an ASEAN network of fast, efficient and interconnected retail payment systems.”
He added, “We will continue to work closely with our partners to accelerate our digitalisation agenda towards increased regional economic and financial integration.”