Cross-border QR payment to strengthen regional connectivity, financial integration

by SHAFIQQUL ALIFF / pic by MUHD AMIN NAHARUL

THE recently launched cross-border QR payment could strengthen regional connectivity, financial integration and give more options for consumers and merchants in the cross-border payment space, said deputy governor Datuk Abdul Rasheed Ghaffour (picture).

The cross-border QR payment linkage was launched by Bank Negara Malaysia (BNM) and the Bank of Thailand (BoT) on June 18.

Abdul Rasheed said the retail payment linkage will enhance the efficiency and convenience of cross-border payments by providing users with faster, cheaper and more inclusive payment arrangements.

In a statement, BoT deputy governor Ronadol Numnonda said the bank recognises the significance of cross-border payment system link-ages and has continuously pursued such initiatives.

“This connectivity builds on our domestic payment infrastructure which will facilitate cross-border retail payment activities between the two countries during and after the pandemic.

“More importantly, it will also facilitate cross-border trade and e-commerce, thus contributing to economic growth and digitalisation,” he said.

BNM expected the cross-border QR payment linkage between the central bank and BoT to go live in the fourth quarter of the year.

It said under Phase Two, users in Malaysia will be able to use their mobile payment applications to scan Thai QR codes to make payments to merchants in Thailand.

“The last phase of the linkage will be expanded to include cross-border remittance,” it added.

BNM also stated that CIMB Thai Bank and Public Bank Bhd are the first two banks that have participated in the linkage and have started to offer the instant cross-border QR code payment service to their customers.

More payment service providers are expected to participate in offering such service, thus, broadening the network of users and merchants.

“This project is made possible with the collaboration of various stakeholders from both countries.

“This includes the Payments Network Malaysia and the National ITMX as payment system operators, as well as banks in the CIMB Group as the settlement banks that are responsible for cross-border transactions performed via the QR payment link-age between Malaysia and Thailand,” BNM said.