Indonesia, Singapore launch cross-border QR payment linkage

The launch supports both BI and MAS’ objective to promote improved integration of the digital economy and financial ecosystem, as well as to expand economic connectivity between Indonesia and Singapore. By enhancing payment convenience, the linkage can allow micro and small businesses to enter an additional pool of customers in each other’s economies. As per the information detailed in the press release, the cross-border QR payment linkage provides travellers between the two regions with convenience, as the number has considerably increased after the COVID-19 pandemic, with 600,000 arrivals from Singapore to Indonesia and 1.1 million from Indonesia to Singapore.

Moreover, BI and MAS signed a Letter of Intent (LOI) to determine a local currency settlement framework, which intends to facilitate the reimbursement of cross-border payments, including QR payments, trade, and investments between the two regions in their respective local currencies after being operationalised in 2024. With this, BI and MAS aim to support businesses and users to minimise their exposure to exchange rate risks and costs. Before the LOI, both banks signed a Memorandum of Understanding on a framework of collaboration to promote bilateral transactions in local currency (LCT Framework) in August 2022, being in line with ASEAN financial integration efforts to promote the wider use of local currencies in intra-ASEAN transactions.

According to BI’s officials, the cross-border QR linkage between the two regions intends to facilitate faster, more cost-efficient, transparent, and inclusive cross-border payments, especially for micro, small, and medium-sized enterprises. Furthermore, the linkage solidifies the commitment among ASEAN members to Regional Payment Connectivity, and the Indonesian Payment Systems Blueprint 2025, as well as offers a more convenient payment method for users. After the implementation of the LCT Framework in 2024, the cross-border QR payment linkage initiative will leverage direct quotations of local currency exchange rates provided by the Appointed Cross Currency Dealer (ACCD) banks.

Representatives from MAS stated that the QRIS-NETS QR payment linkage intends to promote cross-border ecommerce activities and tourism spending across Singapore and Indonesia for individuals and small businesses. The forthcoming local currency settlement framework developed by the two financial institutions will complement the payment linkage by supporting the use of the Indonesia Rupiah and Singapore Dollar for the settlement of cross-border payments. Additionally, these initiatives strengthen Singapore’s expanding cross-border payments linkages with regional economies.

The QRIS-NETS QR payment linkage was developed through partnerships with the Indonesian Payment System Association (ASPI), Rintis, Artajasa, Jalin, and Alto (RAJA), Network for Electronic Transfers, alongside other participating financial institutions.