To Promote Local Currency Use in Bilateral Transactions, Indonesia and Singapore Will Explore Cross-border Qr Code Payment Connectivity
The Monetary Authority of Singapore (MAS) announces that work on cross-border QR code payment linkage between Singapore and Indonesia will commence. The aim is to enhance payment connectivity between the two countries.
The cross-border QR payment linkage is part of the ASEAN-wide payment connectivity effort. The target is to launch this payment linkage system by the second half of 2023.
Instant, Efficient, and Secure
With this payment system in place, transactions will be efficient, instant, and secure. All that needs to be done is to scan the QRIS (Quick Response Code Indonesian Standard). Alternatively, you could scan the NETS QR code that the merchants display.
Individuals and businesses will feel empowered by enhanced connectivity between Singapore and Indonesia. Especially micro, small, and medium enterprises (MSMEs). Both businesses and individuals will feel more at ease conducting cross-border trade, financial activities, or e-commerce.
The security element will also boost international travel and tourism. Singapore and Indonesia have a sizeable flow of travellers between them. Collaboration between representatives of industries from both countries will now be possible because of the QR code linkage.
The Signing of the MoU
MAS and BI signed the Memorandum of Understanding (MoU) to promote the use of local currencies for bilateral trade. All of these efforts are part of the ASEAN financial integration in an effort to facilitate the wider use of local currencies. Moving forward, these local currencies will be used in the intra-ASEAN trade and investment settlement.
Businesses will no longer have to deal with the risks of uneven exchange rates and the costs of bilateral transactions. The cross-border payments mark another milestone for the Indonesian Payment System Blueprint 2025. Users will now have more cross-border payment options, which will then encourage financial inclusion while strengthening macroeconomic stability.
Since this cross-border QR code linkage is in alignment with G20’s efforts to address cross-border payments, economic recovery and growth in both countries are supported post-pandemic. With this enhanced method of connectivity, bilateral transactions between Singapore and Indonesia will be further facilitated.