ASEAN to Work on Roadmap to Expand Payment Connectivity
Jakarta. ASEAN will work on a roadmap to expand its regional payment connectivity to encompass all member states, according to the bloc’s chair Indonesia.
The ASEAN-5 —Indonesia, Malaysia, the Philippines, Thailand, and Singapore— have inked an agreement on linking their QR code payment systems. Chief Economic Affairs Minister Airlangga Hartarto said that ASEAN would discuss the time frame for other member states to join the region-wide payment connectivity.
“Because we will have to make a roadmap first, and we will start with a pilot plan. Today, we have seen how Thailand’s banks have linked with [Indonesia’s] QRIS,” Airlangga told a press briefing shortly after the 22nd ASEAN Economic Community (AEC) Council meeting in Jakarta.
According to Bank Indonesia, six Thai banks have connected to Indonesia’s QR-code facilitated payments or the QRIS, namely Bangkok Bank, Bank of Ayudhya (Krungsri), CIMB Thai, Kasikornbank, Krungthai Bank, and Siam Commercial Bank. Prior to the presser, one of the delegates tried scanning the QRIS using Bangkok Bank’s app.
The 22nd AEC Council meeting agreed on a leaders’ declaration on advancing regional payment connectivity and local currency transaction mechanism for ASEAN to adopt in the upcoming summit in Labuan Bajo.
“This will strengthen financial stability, and boost the region’s economic integration,” Airlangga said.
According to Bank Indonesia Governor Perry Warjiyo back in March, a domestic instant payment system is the prerequisite for a cross-border linkage. The ASEAN-5 already have their respective instant payment systems: for instance, Indonesia with the QRIS and the Bank Indonesia Fast Payment. Vietnam is likely to be the next to join the connectivity. Brunei Darussalam, Laos, and Cambodia would follow later on.
“We started with five [ASEAN countries] first as they all have their domestic instant payment systems to connect bilaterally and multilaterally. And now, Vietnam is ready because they are in the process of strengthening their instant payment system,” Perry told the presser following the 2023 ASEAN Finance Ministers and Central Bank Governors Meeting (AFMGM) in Bali on March 31.
Read More: Vietnam to Join ASEAN Payment Connectivity Soon, Indonesia Says
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