18-11-2023 (SINGAPORE) UOB and OCBC bank account holders can now enjoy seamless cashless transactions in Indonesia using QR codes. DBS customers are set to join the fray soon, offering expanded convenience to users across borders.
This innovative payment method allows account holders to make transactions by leveraging their existing mobile banking applications. By scanning QRIS (Quick Response Code Indonesian Standard) or Nets QR codes, displayed by merchants in Indonesia and Singapore respectively, users can effortlessly engage in cashless payments.
The announcement, made at the Singapore Fintech Festival on November 17, revealed that some banks are simplifying fund transfers between Singapore and Malaysia by linking PayNow in Singapore with Malaysia’s DuitNow. This integration enables users to transfer funds between both countries using only the recipient’s mobile phone number or virtual payment address.
The joint launch of the Indonesia linkage took place with the presence of Bank Indonesia governor Perry Warjiyo and Monetary Authority of Singapore (MAS) managing director Ravi Menon. Concurrently, Bank Negara Malaysia governor Abdul Rasheed Ghaffour and Mr Menon showcased the PayNow-DuitNow linkage by executing live cross-border fund transfers during the conference at the Singapore Expo.
Starting from November 17 and extending until the end of January 2024, the PayNow-DuitNow service will be gradually expanded to customers of Liquid Group, Maybank Singapore, OCBC, and UOB. This phased approach aims to provide customers with ample time to familiarise themselves with the service.
Jacquelyn Tan, the Head of Group Personal Financial Services at UOB, highlighted the potential of the UOB DuitNow fund transfer service for Malaysia residents in Singapore. She stated, “Given the large number of Malaysia residents living and working in Singapore, we anticipate that the UOB DuitNow fund transfer service will be a swift, secure and hassle-free mode for them to remit money back home for their everyday personal and family expenses.”
OCBC had previously enabled its customers to scan and pay merchants using DuitNow QR codes earlier in 2023. Sunny Quek, the bank’s Head of Global Consumer Financial Services, noted a significant uptick in transactions, with about 25% more in October compared to September.
In a joint statement on November 17, Bank Indonesia and MAS emphasized the potential of the QRIS-Nets QR payment linkage to enhance payment convenience for micro and small businesses. This linkage is expected to open new avenues for these businesses to attract customers in each other’s economies, fostering cross-border e-commerce activities and promoting tourism spending between Singapore and Indonesia, according to Mr Menon.
