DuitNow and PayNow Partner to Transform Cross-Border Payments

Bank Negara Malaysia (BNM) and the Monetary Authority of Singapore (MAS) have come together to enhance financial connectivity between Malaysia and Singapore. This collaborative effort aims to simplify and expedite cross-border transactions, with the launch of a real-time payment systems linkage between Malaysia’s DuitNow and Singapore’s PayNow, as highlighted in Fintech Global News.

This significant move in the world of financial technology comes on the heels of the recent introduction of cross-border QR payments, signaling an important milestone in the cooperation between Malaysia and Singapore.

The DuitNow-PayNow linkage promises instant, secure, and cost-effective person-to-person (P2P) fund transfers and remittances between the two nations. This innovative initiative allows users to transfer funds using just a mobile phone number or Virtual Payment Address (VPA), and it includes participation from non-bank financial institutions.

Initially, this service will be available to users of select financial institutions in both countries, with plans for gradual expansion. Users can enjoy the convenience of daily transactions of up to RM3,000 or S$1,000, ensuring widespread accessibility.

BNM Governor Datuk Abdul Rasheed Ghaffour emphasized the importance of such fast, secure, and cost-efficient cross-border payments, especially for individuals and small businesses in countries with close economic ties like Malaysia and Singapore. He stated, «The DuitNow-PayNow linkage enables us to reap these benefits towards our shared growth and prosperity, while laying the foundations for scalable cross-border payment networks across and beyond ASEAN.»

MAS Managing Director Mr. Ravi Menon shared a similar sentiment, saying, «The PayNow-DuitNow linkage is the realization of a shared aspiration by Singapore and Malaysia to facilitate cross-border payments between our two countries. This linkage represents another step toward ASEAN’s vision for regional payments interconnectivity.»

This partnership between BNM and MAS holds the promise of transforming the way cross-border payments are conducted, making them faster, more secure, and accessible to a wider audience. As the collaboration continues to expand, it may set a precedent for other nations in the ASEAN region and beyond to explore similar initiatives, ultimately reshaping the landscape of international payments.