The central banks of Malaysia and Thailand, in a bid to bridge the transactional gaps between neighboring countries, recently launched a cross-border Quick Response, or better known as QR payment linkage, to enable consumers and merchants in both countries to make and receive instant cross-border QR code payments.

The new move is the first phase in integrating the real-time retail payment systems of Malaysia’s Real-time Retail Payments Platform (RRP) and DuitNow instant bank transfers together with Thailand’s PromptPay, they said in a statement. In short, users in Thailand are now able to use mobile payment applications to scan DuitNow QR codes to make payments to merchants in Malaysia.

This follows Thailand’s 2020 e-payment roadmap which calls for the bolstering of digital financial transactions across ASEAN and the further integration of the regional bloc. According to news sources, the Bank of Thailand (BoT) has formed an alliance with Singapore, Myanmar as well as Cambodia to enable the new digital payment system to last year.

Under phase two, expected in Q4 2021, users in Malaysia will be able to do the same with Thailand. The last phase of the linkage will be expanded to include cross-border remittance. Users in both countries will be able to make real-time fund transfers conveniently by referencing the mobile phone number of the recipient. This functionality is expected to go live in the fourth quarter of 2022, the statement said.

The Central Bank of Malaysia (BNM) in a separate statement said, “This service is expected to benefit more users in both countries when international travel resumes, as they can make payment using their mobile payment applications instead of using cash.” 

Until last year, international business collaborations within the ASEAN region are often limited due to the lack of inclusive digital payment systems – especially ones that would not consume days just to process transactions that are made in different currencies. QR code technology is an emerging solution within the financial landscape that promotes contactless, fast, and secure payment capabilities via mobile apps to both, merchants and consumers.

BNM deputy governor Datuk Abdul Rasheed Ghaffour said the retail payment linkage will enhance the efficiency and convenience of cross-border payments by providing users with faster, cheaper, and more inclusive payment arrangements. “It will give more options for consumers and merchants in the cross-border payment space and serve as a key enabler to strengthen regional connectivity and financial integration,” he said.

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Bank of Thailand’s deputy governor Ronadol Numnonda said the bank recognises the significance of cross-border payment system linkages and had continuously pursued such initiatives. The collaboration between Payments Network Malaysia (PayNet) and the National ITMX (NITMX) as payment system operators has made the project possible. Meanwhile, CIMB Thai Bank and Public Bank Bhd are the first two banks to participate in this endeavor and have started offering instant cross-border QR code payment services to their customers.

In a 2020 report by ACI Worldwide and fintech market research and consulting firm Kapronasia,, ASEAN is following in the footsteps of the European Union by having its very own Single European Payments Area (SEPA)-style payments network, making Southeast Asia a global focal point for cross-border real-time payments growth.

“Southeast Asian countries are making significant strides in payments modernization, with nearly every major country in the region having robust domestic real-time payments infrastructure in place. Despite the lack of uniform regulations and disparate economic priorities across the region, it’s clear that market forces — driven by the needs of businesses and consumers — will propel Southeast Asia towards the realization of a multi-country real-time network,” ACI Worldwide’s managing director for Asia Leslie Choo said.

The post Malaysia and Thailand launch cross-border QR payment appeared first on Tech Wire Asia.

The consortium, EMVCo, which includes the biggest names in smart payments – American Express, Visa, Mastercard, and UnionPay – published a document detailing QR code standards that companies seeking to leverage on the framework should follow. The paper emerges about a year since UnionPay made calls for the global fintech community to establish a “safe and open global system” for payments, reports SCMP.

“UnionPay played an active and leading role in the preparations for the issuance of the standard,” Zhou Jinjia, a UnionPay executive in charge of the QR code promotion, said to the Hong Kong-based daily.

UnionPay called for a unified, safe and open payment system, which eventually led to the publishing of EMVCo’s paper. Source: Shutterstock

“It was UnionPay, the leader in the EMVCo working group, that helped provide the final technical solution.”

QR codes, or “Quick Response” codes, were introduced back in 1994 by Japanese automotive innovator, Denso, as a way to store huge amounts of data. QR codes have since become the main mode of transactions and information communications in China, where it has become wildly popular among users and merchants alike. Today, 90 percent of QR code users are in China, reported the People’s Daily newspaper.

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The codes are being used by everybody today, from roadside beggars to hawkers peddling street food. More than 700 million smartphone users scan QR codes to shop online or buygoods from physical vendors. According to iResearch, Chinese buyers have made US$5.6 trillion in online payments exclusively through their mobile devices in 2016 alone.

Doing rounds on weibo: enterprising Chinese beggar accepting donations via WeChat QR code https://t.co/tbBUlYlm6I pic.twitter.com/LIZStZEC4N

— Philip Wen (@PhilipWen11) April 18, 2017

Regulators in China have also taken steps to help push the adoption of QR codes in the country. China has established itself as the foremost proponent of QR code adoption in the world when the central bank’s Payment and Clearing Association of China issued the first regulations governing QR code payments that have since set the standard for other countries looking to do the same.

“Given the fast growth of the country’s Internet-related businesses, it’s safe to say  some of the new technological applications in China have the potential to become world leaders,” Zhang Ming, a managing director with Flag Leader information, which focuses on online-to-offline businesses, told SCMP.

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Furthermore, tech titans Tencent and Alibaba’s payment apps, WeChat Pay and Alipay, have been instrumental in providing the tools necessary for users to begin adopting QR code payments in earnest. The two apps base their platform on the codes that help them store and decipher data.

Likely the consortium’s efforts to standardize QR code adoption will lead to more players entering the market, say analysts.

The post China: Consortium releases paper on QR code standards appeared first on Tech Wire Asia.