Singapore and Indonesia team up on cross-border payments connectivity project
This will launch in the second half of 2023.
The Monetary Authority of Singapore (MAS) and the Bank of Indonesia (BI) has announced the commencement of work on a cross-border QR payment linkage between Singapore and Indonesia as part of the ASEAN-wide payments connectivity effort.
This linkage, which is targeted to be launched in the second half of 2023, will allow users to make instant, secure, and efficient retail payments by scanning the QRIS (Quick Response Code Indonesian Standard) or NETS QR codes displayed by merchants.
The reason for the payment connectivity is to empower individuals and businesses particularly micro, small, and medium enterprises, to conduct their cross-border trade, e-commerce, and financial activities more efficiently. The payment connectivity will also support tourism growth as international travel resumes.
Additionally, BI and MAS signed a Memorandum of Understanding (MOU) today to promote the use of local currencies in bilateral transactions such as trade and direct investments. This is in line with ASEAN financial integration efforts to facilitate the wider use of local currencies in intra-ASEAN trade and investment settlement, with the aim to help businesses reduce their exposure to exchange rate risks and costs of conducting bilateral transactions.
“The QRIS-NETS QR code payments connectivity is a milestone in ASEAN’s goal to establish regional payments integration by 2025 and support the vibrant cross-border trade corridors within the region. This linkage also aligns with the G20’s efforts to address existing frictions in global cross-border payments and support post-pandemic economic recovery and growth. The MOU to promote the use of local currencies for bilateral transactions complements the QRIS-NETS QR code payments connectivity as it will further facilitate the settlement of bilateral transactions between Singapore and Indonesia in their respective local currencies,” Ravi Menon, Managing Director of MAS said.