The Bank of Thailand (BOT) and State Bank of Vietnam (SBV) jointly launched the first cross-border interoperable QR code payment linkage, according to the media. This linkage is between Thailand and Vietnam.
This interoperable QR code for retail payment linkage is expected to assist cross-border payments. Additionally, it also enhances the uses of local currencies between the two nations. It will also facilitate capital flow between the two countries’ financial markets and revitalise the regional economies.
The launch is the result of the collaboration between BOT and SBV which happened in 2019. It was aimed to enhance bilateral trade, investment and tourism between Vietnam and Thailand. It is also considered to represent a milestone for the ASEAN Payment Connectivity initiative. This was carried out to foster financial integration and sustainable growth in the country by connecting payment services using new financial technology.
The tourists flow between the country in the year 2019 was about 1.5 million. Now, as the first phase of the project, tourists from Thailand can make QR payments for goods and services using their mobile phones in Vietnam and vice versa. Users of Bangkok Bank’s mobile banking application can scan ‘Viet QR Codes’ for the exchange of goods and services at merchants of Vietnam’s TP Bank and BIDV. Likewise, Vietnamese tourists using TP Bank and Sacombank’s mobile banking app can scan ‘Thai QR Codes’ of the Bangkok Bank merchants in Thailand.
Other banks that have expressed shared interest in the venture like Vietcombank, Bank of Ayudhya – Thailand, CIMB Thai Bank, Kasikornbank, Krung Thai Bank and Siam Commercial Bank. This transaction initiative is considered safe, efficient and a cost-attractive alternative for retail payments by the public.