Singapore, Malaysia travellers can now use QR code to pay in both countries
SINGAPORE residents going to Malaysia will now be able to make payments using the DuitNow QR code, the national QR code in Malaysia.
Travellers from Malaysia visiting Singapore can also pay using the Nets QR code.
This was announced by the Monetary Authority of Singapore (MAS) and Bank Negara Malaysia on Friday (Mar 31). (*see amendment note)
With pre-pandemic annual traffic between the two countries averaging 12 million visitors, the payment linkage will provide merchants and consumers with a more seamless and efficient means to make and receive payments. They can also use the service to complete online cross-border e-commerce transactions.
The service is available to customers of Singapore’s trio of local banks – DBS, UOB and OCBC. Participating banks in Malaysia include CIMB Bank and Hong Leong Bank.
Managing director of MAS Ravi Menon said: “The QR code payment linkage is the latest addition to Singapore’s growing set of cross-border payment linkages.
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“These linkages will help boost cross-border commerce and enable our merchants, especially small businesses, to tap a wider pool of consumers.”
Bank Negara Malaysia governor Nor Shamsiah Mohd Yunus said: “This is a significant step forward in realising the vision of an Asean network of fast, efficient and interconnected retail payment systems. We will continue to work closely with our partners to accelerate our digitalisation agenda towards increased regional economic and financial integration.”
In the next phase, MAS and Bank Negara Malaysia plan to expand the payment linkage to enable cross-border fund transfers and remittances, so customers can send funds using their mobile numbers via PayNow and DuitNow. This service is expected to go live by the end of the year.
UOB head of group personal financial services Jacquelyn Tan said the QR linkage will further galvanise cross-border spending, especially lower-value transactions which were previously made in cash.
She noted how in 2022, spending on Singapore-issued UOB credit and debit cards in Malaysia increased by almost 15 per cent and 40 per cent respectively, compared with pre Covid-19 levels.
Top retail categories included groceries, apparel and pharmaceutical products, she said.
In April 2021, the Republic’s local PayNow system was linked to Thailand’s PromptPay in a world first for cross-border fast payments.
*Amendment note: An earlier version of the story incorrectly stated that Singapore residents visiting Malaysia can use the Nets QR code to make payment. It should be the DuitNow QR code instead.
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