A shopper in Thailand can now scan a Malaysian DuitNow QR code with a payment app on her phone and pay the shop on the spot. No cash changes hands, and no currency counter is involved.
The Bank of Thailand and Bank Negara Malaysia made that possible by joining their real-time retail payment systems, PromptPay in Thailand and DuitNow in Malaysia. It covers online cross-border purchases as well as in-store ones.
The two central banks described the first phase in a joint statement: “Under the first phase, users in Thailand are now able to use their mobile payment applications to scan DuitNow QR codes to make payment to merchants in Malaysia, including for online cross-border e-commerce transactions.” They expect it to matter most once international travel resumes, when visitors can pay from their phones rather than carry cash.
Two more phases to come
Malaysians get their turn in phase two. They will be able to scan Thai QR codes and pay merchants in Thailand. The banks put that phase in the fourth quarter of 2021.
The last phase adds cross-border remittance. People in both countries will be able to send money in real time using only the recipient’s mobile phone number. The banks expect it in the fourth quarter of 2022.
Who is on board
CIMB Thai Bank and Public Bank Berhad are the first two lenders offering the service. The central banks said more payment service providers are expected to join, which would widen the network of users and merchants.
Datuk Abdul Rasheed Ghaffour of Bank Negara Malaysia said the link “will enhance the efficiency and convenience of cross-border payments by providing users with faster, cheaper, and more inclusive payment arrangements.” He added that it “will give more options for consumers and merchants in the cross-border payment space and serve as a key enabler to strengthen regional connectivity and financial integration.”
PromptPay has run in Thailand since 2016, and the Bank of Thailand says its use grew sharply during the pandemic as people avoided handling cash. The bank has been extending it to other ASEAN countries under the ASEAN Payment Connectivity initiative. In April, the Bank of Thailand and the State Bank of Vietnam launched a similar QR payment service between their two countries.
