No need to bother exchanging money, you can shop in Singapore using QRIS

Jakarta –

Bank Indonesia (BI) and the Monetary Authority of Singapore (MAS) inaugurated the implementation of cross-border QR payment interconnection between Indonesia and Singapore. This implementation allows customers from participating financial institutions to make inter-border retail payments by scanning the Quick Response Code Indonesian Standard (QRIS) or QR Network for Electronic Transfers Singapore (NETS).

The launch took place at the Singapore FinTech Festival 2023. In the first half of 2023, there were 600,000 arrivals from Singapore to Indonesia, and 1.1 million tourists from Indonesia to Singapore. BI and MAS on this occasion also signed a Letter of Intent (LOI) regarding the framework for settling transactions in local currency (local currency settlement).

Later, after being implemented in 2024, this framework will facilitate the settlement of cross-border payment transactions, including payments using QR, trade and investment between Indonesia and Singapore using each country’s local currency.

On the same occasion, BI Governor Perry Warjiyo said that cross-border QR payment interconnection between Indonesia and Singapore will encourage faster, cheaper, more transparent and inclusive payments between countries, especially for MSMEs.

This initiative is a follow-up to the commitment of ASEAN member countries to Regional Payment Connectivity (RPC) cooperation and the implementation of the Indonesian Payment System Blueprint 2025, in realizing a more convenient and efficient payment method for the community.

“We also announced another strategic initiative to encourage wider use of local currencies in bilateral transactions through the Local Currency Transaction (LCT) framework which is expected to be implemented in 2024. Through the implementation of this LCT framework, the QR payment interconnection initiative between countries will later use “direct quotations of local currency exchange rates provided by Appointed Cross Currency Dealer (ACCD) banks,” said Perry in a press release, Friday (17/11/2023).

On the same occasion, Managing Director of MAS, Ravi Menon, said that the QRIS-QR NETS payment interconnection would encourage e-commerce activities between countries and tourist spending between Singapore and Indonesia by individuals and small businesses.

In the future, the local currency settlement cooperation framework by BI and MAS will complement QR payment interconnection by facilitating the use of Indonesian Rupiah and Singapore Dollars for settlement of payment transactions between countries. This initiative marks Singapore’s achievement in strengthening its growing cross-border payments interconnection with key regional partner countries.

This QRIS-NETS QR payment connection was realized through strong industry collaboration with support from BI and MAS, and supported by close collaboration with the Indonesian Payment System Association (ASPI), RAJA (Rintis, Artajasa, Jalin, and Alto), NETS, and participating financial institutions.

Previously, BI had developed the QRIS TUNTAS National Standard in synergy with the Indonesian Payment System Association (ASPI) and representatives of payment system service providers. The implementation of QRIS TUNTAS will be supported by an efficient pricing scheme compared to the fees currently charged for similar services by the industry.

Furthermore, the launch of QRIS TUNTAS has gone through various stages, including a trial phase by industry in the Bank Indonesia Payment System Technology Innovation Test Room. The trial participants consist of 16 Payment Service Providers and Payment System Infrastructure Operators who are expected to be the first movers followed by other PJPs who are ready to develop this feature.

Meanwhile, in the launching event for the implementation of QRIS Cross Border between Indonesia and Singapore, the first movers who took part were only 9 PJPs consisting of banks and non-banks in Indonesia, including Netzme.

Acting as the provider (issuer) and recipient (acquirer) PT Netzme Kreasi Indonesia (Netzme), which operates in the field of providing digital payment system solution services, is one of the Payment Service Providers (PJP) participating in the implementation of QRIS Cross Border between Indonesia and Singapore.

This confirms Netzme’s commitment to increasing the accessibility and connectivity of payments at the international level, making a positive contribution to the financial ecosystem in the ASEAN region, especially among retail customers and MSMEs, which is in line with BI’s initial goals when launching QR Cross Border.

After the successful implementation of QR Cross border in Thailand and Malaysia, Netzme can now be used in Singapore. Indonesian tourists visiting Singapore can easily take advantage of the convenience of QR Cross Border scanning at various local shops that have integrated QR as a non-cash payment option.

On the other hand, Singaporean tourists visiting Indonesia can make payments at various QRIS Toko Netzme merchants through the application they use. This effort demonstrates a continued commitment to expanding the scope and convenience of cross-border non-cash transactions for Netzme users.

Netzme CEO, Vicky G. Saputra said that with the implementation of QRIS Cross Border, our hope is that MSMEs in Indonesia can take advantage of this convenience to reach more international customers, because it can reduce transaction costs and make them more affordable.

“This will not only help expand their business network to the global market, but can also support the tourism sector by offering an easier and more comfortable shopping experience for visiting tourists, so that overall it can increase the competitiveness and growth of MSME businesses,” he said.

For information, the participating financial institutions from Singapore are OCBC and UOB, while DBS is planned to participate at the next stage. Participating payment service providers from Indonesia are PT Bank Central Asia Tbk, PT Bank CIMB Niaga Tbk, PT Bank Pembangunan Daerah Bali, PT Bank Permata Tbk, PT Bank Syariah Indonesia Tbk, PT Bank Mega Tbk, PT Bank Sinarmas Tbk, PT Bank Rakyat Indonesia Tbk, PT Espay Debit Indonesia Koe, PT Netzme Kreasi Indonesia

(ily/kil)