Bank Negara Malaysia (BNM) and Payments Network Malaysia Sdn Bhd (PayNet) are working on a proof of concept called the Nexus Project with international partners to reduce costs and speed up cross-border payments.
BNM and PayNet said in a joint statement that the proof of concept would look into the feasibility of connecting real-time payment systems in Malaysia, Singapore, and Europe.
Malaysia’s participation in the Nexus Project, according to BNM Assistant Governor Fraziali Ismail, demonstrates the country’s commitment to future-proofing its key payment infrastructure.
“This initiative will pave the way for the Real-Time Retail Payment Platform (RPP) or DuitNow to connect with other real-time payment systems around the world, based on the success of bilateral payment linkages with other ASEAN countries.”
“This effort will help Malaysians achieve their goal of a faster, cheaper, and more accessible cross-border payment system,” he said.
According to the statement, the findings of the project study, which are expected to be published by the end of 2022, will aid in the development of a network of global real-time payment systems in the future, allowing cross-border payments to be faster and smoother.
At this time, the prototype that will be developed as part of the proof of concept cannot be used by the general public.
It highlights the payment link between Malaysia and Thailand that was launched in June 2021 to enable real-time cross-border payments between the two countries using QR codes.
Furthermore, it will be expanded in 2022 to support real-time fund transfers using only mobile phone numbers, according to the statement.
Efforts are also being made to establish a common payment network with Indonesia and Singapore, which will be launched at the end of 2021 and the beginning of 2022, respectively.
