In a statement, the bank said that it will pave the way to enabling transactions with more ASEAN countries in the near future when the borders reopen post-pandemic and to foster close collaboration with Payment Network Malaysia Sdn Bhd (PayNet).”

Public Bank managing director Tan Sri Tay Ah Lek told the media, “PBe QR, on top of the existing domestic DuitNow QR payment services will be a catalyst to this, providing simple, cost-effective and secure solution to enable MSMEs to accept cashless payments.

“We are supportive of the nation’s push towards digitisation of various banking services and the creation of a financially inclusive society. With the increasing use of smartphones for banking, we are getting there and will continue to deliver the most efficient and convenient payment services for our customers.”

Last week Public Bank announced its net profit for the second quarter of 2022. The bank posted a net profit of RM1.38 billion for the period, which is a 38.4 percent increase from a year ago.

It further revealed that its revenue increased by 3.8 percent year-on-year to reach RM4.92 billion from RM4.74 billion. During the first half of 2021, the bank’s net profit rose by 25 percent to RM2.91 billion.

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This connection is the first of its kind that links the retail payment system operators in both countries and also marks a key milestone in the ASEAN Payment Connectivity initiative that aims to promote financial integration in the region. The development of the QR payment system is similar to that launched between Singapore and Thailand and Malaysia and Thailand, where the countries announced their own cross-border payment.

The pilot launch of the QR payment system will focus on ensuring smooth interconnection and pave the way for customers, merchants, and operators for the full commercial launch next year. Currently, users from Indonesia can now use their mobile payment application to scan Thai QR codes to make payments to merchants all over Thailand.

Similarly, users from Thailand can also use their mobile payment applications to scan Quick Response Code Indonesian Standard (QRIS) to pay for goods and services at merchants in Indonesia along with using this feature for e-commerce transactions.

Sugeng Sugeng, deputy governor of Bank Indonesia told the media, “One interesting aspect of this project is the use of direct quotation of local currency exchange rates provided by the Appointed Cross Currency Dealer (ACCD) banks under the Local Currency Settlement (LCS) Framework to improve the efficiency of the transactions, thus lowering transaction costs.”

“The significant expected outcome of this first cross-border payment project is not only to facilitate transactions in the tourism sector but also to assist SMEs in tourist areas. This project will also increase financial inclusion, inclusive digital economy, and e-commerce transactions.”

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