PayNow and DuitNow Enable Cross-Border P2P Fund Transfers

Published 8 months ago

The Monetary Authority of Singapore (MAS) and Bank Negara Malaysia (BNM) launched a real-time payment systems linkage between Singapore’s PayNow and Malaysia’s DuitNow on 17 November 2023. The service enables users to transfer funds instantly across borders using just the recipient’s mobile phone number or Virtual Payment Address (VPA).

Rapid, Secure and Cost-effective Transfers

The PayNow-DuitNow linkage provides an instant, secure, and cost-effective solution for person-to-person (P2P) fund transfers between Singapore and Malaysia. It is the first real-time payment systems linkage to include non-bank financial institutions from both countries. This wider participation allows a broader group of users to send and receive up to S$1,000 or MYR3,000 daily.

Phased Approach for Customer Familiarisation

Singapore customers of Liquid Group, Maybank Singapore, OCBC, and UOB will be able to access the service under a phased approach. These institutions will slowly introduce the service to different user groups from 20 November 2023 until the end of January 2024. The aim is to support users in getting accustomed to the new service. In Malaysia, CIMB, Maybank, and TNG Digital users will gain initial access, with other financial institutions to follow.

Collaborative Effort for Enhanced Payments

The PayNow-DuitNow linkage results from extensive collaboration among central banks, payment system operators, scheme owners, and participating financial institutions of both countries. The initiative marks a significant milestone in improving the cost, speed, access, and transparency of cross-border payments. It aligns with the objectives of the ASEAN Payment Connectivity Initiative and the G20 Roadmap for Enhancing Cross-border Payments.

Towards Regional Payments Interconnectivity

Ravi Menon, Managing Director of MAS, hailed the linkage as a realization of the shared aspiration between Singapore and Malaysia to facilitate cross-border payments. Abdul Rasheed Ghaffour, BNM Governor, believes that swift, secure, and cost-efficient cross-border payments can bring immense benefits, particularly for individuals and small businesses in closely tied economies like Malaysia and Singapore. The PayNow-DuitNow linkage, he said, lays the foundation for scalable cross-border payment networks across and beyond ASEAN.

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