The payments connectivity will allow individuals and businesses to make cross-border trade, ecommerce and financial activities more efficiently
The country’s respective central banks plan to launch the system this year. It will allow users to make payments by scanning a QR code displayed by merchants.
The payments connectivity will allow individuals and businesses to make cross-border trade, ecommerce and financial activities more efficiently, the MAS said in statement. It will particularly benefit micro, small and medium enterprises. And also support tourism growth.
Both central banks also signed a Memorandum of Understanding, agreeing to promote the use of local currencies in bilateral transactions, such as trade and direct investments.
Perry Warjiyo, governor of BI, said: “This initiative represents another milestone of the Indonesian Payment System Blueprint 2025. And also promotes the use of local currencies.
“It provides more options for users in cross-border payment transactions and serves as a key to improving transaction efficiency.”
Ravi Menon, managing director of MAS, said: “The QR code payments connectivity is a milestone in ASEAN’s goal to establish regional payments integration by 2025. And it will support the vibrant cross-border trade corridors within the region.
“This linkage also aligns with the G20’s efforts to address existing frictions in global cross-border payments.”