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Bank Indonesia (BI), Bank Negara Malaysia (BNM), Bangko Sentral ng Pilipinas (BSP), Monetary Authority of Singapore (MAS), and Bank of Thailand (BOT) have agreed to strengthen and enhance cooperation on payment connectivity to support faster, cheaper, more transparent, and more inclusive cross-border payments.
A Memorandum of Understanding (MOU) on Cooperation in Regional Payment Connectivity (RPC) was signed on 14 November 2022 in Bali, Indonesia, on the sidelines of the G20 Leaders’ Summit with keynote address from Indonesia’s President, His Excellency Joko Widodo.
Regional Payment Connectivity (RPC)
The RPC is expected to be a significant contributor to accelerating regional economic recovery and promoting inclusive growth. The implementation of cross-border payment connectivity serves to support and facilitate cross-border trade, investment, financial deepening, remittance, tourism, and other economic activities, as well as a more inclusive financial ecosystem in the region.
QR code and fast payment
This is particularly beneficial for micro, small, and medium enterprises as it will facilitate their participation in international markets. The cooperation will include a number of modalities, including QR code and fast payment.
Accelerating economic and financial digitalization has become a global initiative, with the G20 establishing its Roadmap for Enhancing Cross-Border Payments. The cooperation initiative also aligns with Indonesia’s G20 Presidency priority agenda in the area of digital transformation, including through payment systems in the digital era, as evidenced by joint efforts to pursue enhanced cross-border payment connectivity involving Indonesia, Malaysia, the Philippines, Singapore, and Thailand.
In the future, this payment connectivity initiative could be expanded to include other countries in the region as well as potential partner countries outside the region. This milestone also marks the beginning of Indonesia’s presidency of the Association of Southeast Asian Nations (ASEAN) in 2023.
Source: Bank of Thailand