Using your smartphone to pay with a DuitNow QR code in Singapore is now possible. The central banks of Singapore and Malaysia have linked their QR code payment systems.
Bank Negara Malaysia (BNM) and the Monetary Authority of Singapore (MAS) has launched a cross-border QR code payment linkage between the two countries.
In a statement from BNM, they stated that the payment linkage will allow Malaysians to make payments by scanning DuitNow in Singapore and Singaporeans to use NETS QR codes in Malaysia.
How cross-border QR code payment work
According to BNM, customers on both sides of the border can now pay with this new QR code link using their respective accounts in participating financial institutions.
The *participating financial institutions in Malaysia are:
- AmBank Malaysia Berhad, Boost
- CIMB Bank Berhad
- Hong Leong Bank Berhad
- Malayan Banking Berhad
- Public Bank Berhad
- Razer Merchant Services Sdn. Bhd.
- TNG Digital Sdn. Bhd.
- United Overseas Bank Malaysia Berhad
*Participating institutions from Singapore are:
- DBS Bank
- OCBC Bank
- UOB
*List of participating financial institutions as of 31 March 2023.
The cross-border payments can be used for in-person payments through the scanning of physical QR codes displayed by merchants. It can also be used for online cross-border e-commerce transactions.
Real-time fund transfers to launch by year end
The next phase will also enable cross-border account-to-account fund transfers and remittances. It is expected to launch by the end of 2023.
Users in Malaysia and Singapore can make real time fund transfers between both countries just by using the recipient’s mobile phone number via DuitNow and PayNow.
Currently, the annual visitor traffic between the two countries averages 12 million so seamless cross-border payments is essential.
“The QR linkage between Malaysia and Singapore will benefit millions of commuters across the Causeway as well as business and leisure travelers. It will also be a boost to retail businesses in both countries. We will continue to work closely with our partners to accelerate our digitisation agenda towards increased regional economic and financial integration,” said Bank Negara Malaysia Governor Tan Sri Nor Shamsiah.
She highlighted that this collaboration between the two regulating bodies is a significant step forward in realizing the vision of an ASEAN network of fast, efficient and interconnected retail payment systems.
Mr Ravi Menon, the Managing Director of the Monetary Authority of Singapore also added that these linkages will help boost cross-border commerce and enable merchants and small businesses to tap on a wider pool of consumers.
