Transferring cash to another country usually isn’t a straightforward process. You’d have to go through specialised platforms and pay remittance fees.
Cross-country collaborations are now expanding, with Singapore’s PayNow set to link with Malaysia’s DuitNow.
The Monetary Authority of Singapore (MAS) and Bank Negara Malaysia (BNM) announced the move today (27 Sep), saying that this would make it more convenient for customers to transfer funds using their mobile numbers.
According to a joint press release by MAS and BNM, PayNow and DuitNow will be linked in the 4th quarter of 2022.
The linkage will increase convenience for customers of participating financial institutions.
Once the PayNow-DuitNow linkage is launched, customers can scan NETS or DuitNow QR codes displayed at merchants’ storefronts to make retail payments.
Hence, customers can look forward to smoother transactions, especially with the high volume of remittances between both countries. The total hit S$1.3 billion last year.
With the launch of PayNow-DuitNow, MAS and BNM will be expanding the service to allow for more features.
Features will include distributed ledger technology-based solutions to improve the efficiency of clearing payments and settlement between participating banks.
The new linkage signifies an important milestone for the relations of Singapore and Malaysia.
It also closely aligns with the G20’s goal of driving faster, cheaper, and more inclusive and transparent cross-border payments.
Thus, the PayNow-DuitNow signals a step closer to achieving an ASEAN network of linked real-time payment systems.
According to the Chief FinTech Officer of MAS, Mr Sopnendu Mohanty, the PayNow-DuitNow linkage is crucial to support cross-border payments.
It will not only benefit individuals and businesses but the growing digital economic activity as well.
Fraziali Ismail, Assistant Governor of BNM, also mentioned that the linkage would strengthen the Singapore-Malaysia economic ties, boosting post-pandemic economic growth.
Though citizens from Singapore and Malaysia cannot travel across the Causeway for now, customers will find the partnership more convenient once the borders open.
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Featured image adapted from Invest Travel Play and Standard Chartered.
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