We have been keeping track of faster payment developments in the U.S. and across the globe now for several years, and one of the things we have been expecting is the eventual combination of real-time and cross-border. Things like the P27 initiative for Nordic countries (expected live in 2022), potential experiments with CBDCs between two markets, the blockchain networks and other stablecoins/cryptos, as well as SWIFT gpi ambition to get into the real-time flows.
In this announcement posted at Reuters, Thailand and Malaysia have launched an instant payment cross-border payment linkage using QR codes. We pointed out a similar launch effort between Thailand and Vietnam just a couple of months ago.
‘The central banks of Thailand and Malaysia launched on Friday a cross-border QR (Quick Response) payment linkage to enable consumers and merchants in both countries to make and receive instant cross-border QR code payments….The move is the first phase in linking the real-time retail payment systems of Malaysia’s RPP/DuitNow and Thailand’s PromptPay, they said in a statement.’
So this is a continuation of the collaborative effort between ASEAN nations and we should expect to see more. The use cases seem to be retail oriented, but at some point these should be expandable between businesses to utilize in B2B cases as well. So the advancements continue and southeast Asia seems to be a hub of progressive activity.
‘Users in Thailand are now able to use mobile payment applications to scan DuitNow QR codes to make payments to merchants in Malaysia….Under phase two, expected in the fourth quarter of 2021, users in Malaysia will be able to do the same with Thailand….The final phase will enable both countries to make real-time fund transfers and is due to be in place in the fourth quarter of 2022, the statement said.’
Overview by Steve Murphy, Director, Commercial and Enterprise Payments Advisory Service at Mercator Advisory Group