In a significant step towards enhancing financial connectivity in Southeast Asia, the central banks of Malaysia and Singapore have announced the establishment of a real-time payment systems linkage. This new service, named PayNow-DuitNow, allows individuals in both countries to perform instant peer-to-peer (P2P) fund transfers. The initiative was launched today at the Singapore FinTech Festival event and marks a continuation of efforts to improve cross-border payments following the establishment of a QR payment system on March 31st.
The PayNow-DuitNow system enables users to transfer up to RM3,000 or S$1,000 daily. The service is designed to be inclusive by incorporating non-bank financial institutions to widen access. Among the early supporters are Maybank, CIMB, and TNG Digital, with DBS and Hong Leong Bank expected to join at a later stage.
To initiate a transfer, users need to follow simple instructions: log into their bank's app, select a Singaporean contact or Virtual Payment Address (VPA), enter the amount they wish to send, and confirm the transaction. The process promises efficiency and convenience for consumers in both nations.
This phased rollout starts today in Singapore, with Malaysians gaining immediate access to outbound transfers. Inbound transfers for Malaysians are set to become available in December. The initiative will continue its expansion through January 2024.
The collaboration between Bank Negara Malaysia (BNM) and the Monetary Authority of Singapore (MAS), along with operators like Banking Computer Services Pte Ltd for Singaporean operations, aims to align with G20 Roadmap goals to elevate cross-border payment efficiency. The significance of this initiative is underscored by last year's transaction volume totaling S$2.3 billion and MYR7.8 billion, highlighting its potential impact within ASEAN's vision for payment interconnectivity.
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