As part of the ASEAN-wide payments connectivity initiative, the Monetary Authority of Singapore (MAS) and the Bank Indonesia (BI) announced the start of work on a cross-border QR payment linkage between Indonesia and Singapore.
“The QRIS-NETS QR code payments connectivity is a milestone in ASEAN’s goal to establish regional payments integration by 2025 and support the vibrant cross-border trade corridors within the region,” says Ravi Menon, Managing Director of MAS.
He added that the collaboration is consistent with the G20’s attempts to eliminate existing frictions in global cross-border payments and aid post-pandemic economic recovery and growth. Users will be able to make rapid, safe, and efficient retail payments by scanning merchants’ displayed QRIS (Quick Response Code Indonesian Standard) or NETS QR codes. This integration is scheduled to be implemented in the second half of 2023.
This payment connectivity between Indonesia and Singapore would enable individuals and businesses, especially micro, small, and medium-sized enterprises (MSMEs), to undertake cross-border trade, e-commerce, and financial transactions more efficiently. It will also contribute to the expansion of tourism once international travel restarts. There are substantial travel flows between the two nations, with 1,9 million Singaporeans arriving in Indonesia and 3.1 million Indonesians arriving in Singapore.
This QR code linkage is made possible via the involvement of industry representatives from both nations under the direction of BI and MAS. BI and MAS also inked an MoU to encourage the use of local currencies in bilateral activities such as trade and direct investments. This is consistent with ASEAN’s aspirations toward financial integration to promote greater use of local currencies in intra-ASEAN trade and investment settlement. This can assist firms in minimising their exposure to exchange rate risks and the costs associated with executing bilateral transactions.
In addition, Ravi stated that the MoU to promote the use of local currencies for bilateral transactions complements the QRIS-NETS QR code payments connectivity by making it easier for bilateral transactions between Singapore and Indonesia to settle in their respective local currencies.
Perry Warjiyo, Governor of BI stated that payment digitisation and cross-border payments have been prioritised during Indonesia’s G20 presidency in 2022 and the ASEAN Central Bank Governors’ Meeting in April 2022.
This effort connects cross-border payments by interconnecting national QR codes of payment between two nations. It is another milestone in the Indonesian Payment System Blueprint 2025, and it interacts with the framework to promote the usage of local currencies.
It gives customers more options in cross-border payment transactions and is critical to enhancing transaction efficiency, expanding digital economic and financial inclusion, and strengthening macroeconomic stability by encouraging more widespread usage of local currencies in bilateral transactions. Bank Indonesia believes that the measures are a significant step toward enhancing Singapore-Indonesia’s bilateral financial cooperation.
OpenGov Asia earlier reported that the MAS and the Association of Banks in Singapore (ABS) have announced additional steps to protect clients from digital banking scams. After discussions with the MAS and the Singapore Police Force (SPF), banks are gradually implementing the additional procedures, which will be fully implemented by 31 October 2022.
The fight against fraud in Singapore necessitates vigilance throughout the ecosystem. This additional set of safeguards will improve customers’ ability to protect themselves against digital banking scams.
To limit the likelihood of visiting fake websites, bank customers are aggressively pushed to use mobile banking apps rather than online browsers. Banks will continue to improve the functionality of their banking apps to encourage customers to use them more regularly.