Margaret Chrystall
Updated on: October 13, 2024 1:08 pm GMT
KUALA LUMPUR: In a significant advancement towards regional financial integration, Malaysia and Cambodia have launched a new cross-border Quick Response (QR) payment system designed to enhance transactions for consumers and merchants in both countries. This initiative aims to simplify retail payments and expand business opportunities, particularly for small businesses.
QR Payment Linkage Unveiled
On September 19, 2024, the central banks of Malaysia and Cambodia announced the successful implementation of a QR payment linkage that enables instant payments through mobile applications. This technology allows consumers in Cambodia to make payments in Malaysia by scanning DuitNow QR codes, while merchants can easily receive payments from customers.
- Consumers in Cambodia can now make online purchases in Malaysia.
- Over five million merchants across both countries stand to benefit, particularly small businesses seeking a wider audience.
Bank Negara Malaysia (BNM) and the National Bank of Cambodia (NBC) emphasized that this collaboration reflects a shared goal of financial innovation and integration within the Association of Southeast Asian Nations (ASEAN).
Benefits to Merchants and Consumers
According to BNM, the QR payment linkage will offer numerous advantages:
- Expanded Customer Base: Small businesses in both nations will gain access to a broader customer base, driving more sales.
- Boost in Tourism: The initiative is likely to encourage tourism as travelers can make seamless payments while shopping abroad.
- Trade Enhancement: Increased ease of payment may promote greater trade between the two nations.
BNM Governor Datuk Seri Abdul Rasheed Ghaffour highlighted that the initiative not only fosters an interconnected payment ecosystem but also utilizes the advantages of digital financial services in advancing regional economic growth.
How It Works
The initiative is being rolled out in two phases. The first phase, which has just been completed, allows Cambodians to make payments in Malaysia. The second phase will enable Malaysians traveling to Cambodia to use KhmerQR to pay local merchants.
- First Phase: Cambodians can make payments in Malaysia using the Bakong app or Maybank M2U KH app by scanning DuitNow QR codes.
- Second Phase: Malaysians will be able to make purchases in Cambodia by scanning the KhmerQR with participating financial institutions.
This phased approach emphasizes the careful planning and collaboration between various stakeholders, including banks and payment networks from both nations.
Strong Partnerships Drive Success
The successful rollout of this payment system is attributed to the teamwork and strategy of key players such as Payments Network Malaysia Sdn Bhd (PayNet) and major banks. NBC Governor Dr. Chea Serey noted, “This cross-border payment initiative will play a crucial role in boosting trade activities and advancing financial inclusion in both nations.”
The initiative aligns with the ASEAN vision of developing efficient and secure interconnected payment systems across the region. It represents an important step towards enhancing economic collaboration among member countries.
Looking Ahead
As the QR payment system becomes more established, both central banks are focused on ensuring its success. The next phase will roll out as soon as feasible, paving the way for an even more integrated regional payment system.
The excitement around this new payment method is indicative of the growing trend of digital transactions in Southeast Asia. QR code payments have skyrocketed in popularity, offering a viable alternative to traditional banking for many consumers, especially in rural areas where banking infrastructure may be lacking.
- Engagement with Consumers: As more people embrace this payment method, businesses may find new ways to engage with customers through tailored promotions and services.
- Increased Financial Literacy: The initiative highlights the need for greater financial education, helping consumers understand and utilize digital payments safely.
This collaborative effort marks a pivotal moment for the financial sectors of both countries, setting the stage for greater innovation and cooperation in the future.
Conclusion
The new QR payment system between Malaysia and Cambodia is a smart step for money services that can help the economies of both countries grow and connect better. This program can make it easier for people to pay for things and can boost trade, tourism, and friendships between the two nations. Everyone involved is hopeful that this partnership will bring good things not just for Malaysia and Cambodia, but for the entire ASEAN region.
