Bank Negara Malaysia and the Monetary Authority of Singapore have jointly launched the real-time payment systems linkage between Malaysia’s DuitNow and Singapore’s PayNow.The initiative follows the QR payment linkage announced on 31 March 2023 which enabled cross-border QR payments to merchants.
BNM Governor Datuk Abdul Rasheed Ghaffour and MAS Managing Director Mr Ravi Menon marked the launch by executing live cross-border fund transfers to each other at the Singapore FinTech Festival today. The DuitNow-PayNow linkage enables instant, secure, and cost-effective P2P fund transfers and remittances between the two countries. This real-time
payment systems linkage is also the first to include the participation of non-bank financial institutions from both countries, providing access to a broader group of users. Consumers of participating financial institutions are now able to send and receive funds of up to RM3,000 or S$1,000 daily by using the recipient’s mobile phone number or VPA.
For users in Malaysia, the service will first be available for all Maybank, CIMB and TNG Digital’s users3, with other financial institutions gradually onboarded thereafter. The service will be made available to Singapore customers of Liquid Group, Maybank Singapore, OCBC and UOB under a phased approach, where these institutions will progressively increase the number of eligible user groups from today until end-January 2024. This is to support customers’ familiarisation with the service.
The DuitNow-PayNow linkage is an outcome of extensive collaboration among the central banks, payment system operators, scheme owners, and participating financial institutions of both countries. It is an important milestone in improving the cost, speed, access and transparency of cross-border payments. Users from both countries will benefit from the linkage’s costeffectiveness, inclusivity and accessibility. It is also aligned with the objectives of the ASEAN Payment Connectivity Initiative and the G20 Roadmap for Enhancing Cross-border Payments.
In 2022, P2P and remittance transactions between the two countries stood at RM7.8 billion/S$2.3 billion. BNM Governor Datuk Abdul Rasheed Ghaffour said, “Cross-border payments that are fast, secure, and cost-efficient can provide immense benefits, especially for individuals and small businesses in countries with very close economic ties such as Malaysia and Singapore.
