The Monetary Authority of Singapore (MAS) and Bank Negara Malaysia (BNM) have unveiled a new real-time payment linkage connecting Singapore’s PayNow and Malaysia’s DuitNow.
This facilitates instant person-to-person (P2P) cross-border fund transfers, allowing users to transfer funds between the two countries using only the recipient’s mobile number or Virtual Payment Address (VPA).
The new linkage allows for daily transfers of up to S$1,000 or RM 3,000 and is the first to involve non-bank financial institutions from both countries, thereby expanding its reach.
The Singaporean participants in this service include Liquid Group, Maybank Singapore, OCBC, and UOB, with DBS set to join later.
The Malaysian side comprises CIMB Bank Malaysia, Maybank, and TNG Digital’s Touch ‘n Go eWallet, with Hong Leong Bank scheduled to participate in the future.
The service rollout will occur in phases, with TNG Digital offering the outbound service (Malaysia to Singapore) immediately and the inbound service (Singapore to Malaysia) starting in December 2023.
Following the QR payment linkage launched earlier this year, this new connectivity marks a continuation of efforts to streamline cross-border transactions.
This project represents a collaborative effort among central banks, payment system operators, scheme owners, and financial institutions of both countries.
It is aligned with broader goals such as the ASEAN Payment Connectivity Initiative and the G20 Roadmap for Enhancing Cross-border Payments.
In 2022, the P2P and remittance transactions between Singapore and Malaysia totaled S$2.3 billion and RM7.8 billion, underscoring the importance of this new payment link.
Ravi Menon
MAS Managing Director Ravi Menon said,
“The PayNow-DuitNow linkage is the culmination of a shared aspiration by Singapore and Malaysia to facilitate cross-border payments between the two countries.
This linkage represents another step towards ASEAN’s vision for regional payments interconnectivity.”
Datuk Abdul Rasheed Ghaffour
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.
The PayNow-DuitNow 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.”
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- Source: https://fintechnews.sg/80653/singapore-fintech-festival-2023/instant-p2p-fund-transfers-now-enabled-between-singapore-and-malaysia/
