Singapore, Philippines explore linking up real-time payments systems

Published Mon, Nov 8, 2021 · 09:50 AM

THE remittance corridor between Singapore and the Philippines, which totalled S$2.89 billion in 2020, may soon see more seamless cross-border flows as the 2 countries work to connect their real-time and QR payment systems.

The Monetary Authority of Singapore (MAS) and the Bangko Sentral ng Pilipinas (BSP) plan to bring about interoperable payments between Singapore and the Philippines.

The 2 parties on Monday (Nov 8) signed an enhanced fintech cooperation agreement, which builds on the earlier 2017 agreement to broaden the scope of fintech collaboration and partnership between MAS and BSP.

The aim is to offer instant, seamless and low-cost cross-border payments. Besides catering to the sizeable remittance flows between Singapore and the Philippines, the link-up is meant to benefit the pre-pandemic yearly average of about 900,000 travellers between both countries.

A press statement said the latest collaboration aligns with the G-20's efforts to address "existing frictions" in global cross-border payments, and contribute to Association of South-east Asian Nations' (Asean) goal of establishing regional payments integration by 2025.

"Both central banks will also explore multilateral interoperability of these projects, in keeping with regional efforts to establish further linkages within Asean and with countries outside the region."

MAS managing director Ravi Menon told The Business Times earlier this month that the central bank has also discussed with both Philippines and Indonesia to link up their real-time payment systems, in the same way it would with Malaysia, India and Thailand. The aim is to make such micropayments via each country's equivalent PayNow, more efficient and cheaper.

Singapore's PayNow and Malaysia's DuitNow - which MAS said would connect Singapore's largest remittance corridor - is due to link up in Q4 2022.

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