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Indonesia and Singapore to carry out cross-border QR code payments connectivity

Tuesday 30 August 2022 14:38 CET | News

Bank Indonesia (BI) and the Monetary Authority of Singapore (MAS) have announced a cross-border QR payment link between Indonesia and Singapore.

 

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.

This payment connectivity between Indonesia and Singapore will enable individuals and businesses, particularly micro, small, and medium enterprises (MSMEs), to conduct their cross-border trade, ecommerce, and financial activities more efficiently. It will also support tourism growth as international travel resumes. There are sizeable traveller flows between the two countries with 1.9 million arrivals in Indonesia from Singapore and 3.1 million arrivals in Singapore from Indonesia, as per the press release.

This QR code linkage is made possible with the collaboration of industry representatives from both countries under the joint stewardship of BI and MAS. This includes the Indonesian Payment System Association (ASPI), RAJA (Rintis, Artajasa, Jalin, and Alto), and NETS.

 

Indonesia and Singapore to carry out cross-border QR code payments connectivity

 

Exploring local currencies for bilateral transactions

BI and MAS also 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. This can help businesses reduce their exposure to exchange rate risks and costs of conducting bilateral transactions.

BI’s officials stated that payment digitalisation and cross-border payments have become a priority agenda. This initiative links cross-border payments through the interconnection of national QR codes of payment between two countries. This represents another milestone of the Indonesian Payment System Blueprint 2025 and also integrates with the framework to promote the use of local currencies. 

This development provides more options for users in cross-border payment transactions and serves as a key to improving transaction efficiency, promoting digital economic and financial inclusion, and strengthening macroeconomic stability by promoting more extensive use of local currencies for bilateral transactions. Bank Indonesia believes that the initiatives mark a step in strengthening bilateral financial cooperation between Singapore and Indonesia.


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Keywords: QR payments, QR code, digitalisation, online payments, Monetary Authority of Singapore (MAS)
Categories: Payments & Commerce
Companies: Bank Indonesia, MAS
Countries: Indonesia, Singapore
This article is part of category

Payments & Commerce

Bank Indonesia

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MAS

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