Indonesia-Malaysia Cross-Border QR Payment Linkage Launched

Bank Indonesia (BI) and Bank Negara Malaysia (BNM) has announced the official launch of the Indonesia-Malaysia cross-border QR payment linkage, following the successful completion of the pilot phase on January 27th, 2022. This commercial launch will see the number of participating financial institutions, including non-banks, increase, allowing more Indonesians and Malaysians to make instant retail payments in either country by scanning Quick Response Code Indonesian Standard (QRIS) or DuitNow QR codes at physical stores or online merchants using services offered by participating financial institutions.

Tan Sri Nor Shamsiah Mohd Yunus, Governor of Bank Negara Malaysia, stated that “ASEAN is more connected now than ever.” This payment linkage will enable more users from Malaysia and Indonesia to benefit from a secure, seamless, and efficient experience for cross-border payments, which could potentially boost economic activities, including tourism spending in both countries. Furthermore, the QR payment linkage will help expand markets for some businesses, facilitate increased settlements in local currency, improve financial outcomes, and contribute to a more vibrant ASEAN and further development of the region as a center of growth.

Governor of Bank Indonesia, Mr. Perry Warjiyo, also emphasized the importance of this payment linkage, stating that it is a concrete example of strengthened cooperation on Regional Payment Connectivity to promote faster, cheaper, more transparent, and more inclusive cross-border payments, particularly for the benefits of micro, small, and medium enterprises. The linkage aligns with the G20 initiative in establishing the Roadmap for Enhancing Cross Border Payments and serves as a significant deliverable of Indonesia’s chairmanship of the ASEAN in 2023.

The QR payment linkage will strengthen the close economic ties between Indonesia and Malaysia, support a more inclusive and stronger post-pandemic economic recovery, and provide greater convenience for international travelers while benefiting the tourism and retail sector of both economies. The successful launch of the payment linkage is a result of close industry collaboration championed by BI and BNM, which worked closely with the Indonesian Payment System Association, PayNet, and participating financial institutions. BI and BNM welcome participation from more financial institutions to further expand the cross-border payments ecosystem.

9 May 2023

Author: Terry KS

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