KUALA LUMPUR, June 18 (Xinhua) -- The central banks of Malaysia and Thailand on Friday launched a cross-border QR code payment linkage between the two countries, enabling consumers and merchants in both countries to make and receive instant cross-border payments.
The central banks said in a joint statement that the project will be completed in three phases.
Under the first phase, users in Thailand are able to use their mobile payment applications to scan QR codes to make payments to merchants in Malaysia including for online cross-border e-commerce transactions.
Under phase two which is expected to go live in the fourth quarter of 2021, users in Malaysia will be able to use their mobile payment applications to scan Thai QR codes to make payments to merchants in Thailand.
The last phase of the linkage, which is expected to go live in the fourth quarter of 2022, will be expanded to include cross-border remittance, where users in both countries will be able to make real-time fund transfers conveniently by referencing the mobile phone number of the recipient.
The central banks said this collaboration represents a key milestone in the ASEAN Payment Connectivity initiative that promotes financial integration in the region through increased efficiency, reduced costs and improved user experience for cross-border payments.
The retail payment linkage will serve as an important enabler to support post-pandemic economic recovery by further strengthening economic ties between participating countries, the central banks said.