Payments

Malaysia and Cambodia Regulators Ink MoU on Cross-Border QR Payments

by Fintech News Malaysia February 27, 2024

The central banks of Malaysia and Cambodia have formalised a partnership aimed at advancing financial innovation and streamlining cross-border payment systems.

The Memorandum of Understanding (MoU), signed by Bank Negara Malaysia (BNM) and the National Bank of Cambodia (NBC), was witnessed by the Prime Ministers of both nations.

The agreement between BNM Governor Abdul Rasheed Ghaffour and NBC Governor Chea Serey paves the way for a collaborative effort to facilitate more efficient and secure cross-border transactions.

A key feature of this cooperation is the integration of domestic payment systems to enable cross-border QR payments, enhancing trade and tourism between the two countries.

This cooperation also aims to encourage the use of local currency settlement and support the establishment of a cooperative oversight mechanism for safer cross-border payments.

This MoU is part of the broader ASEAN Regional Payment Connectivity initiative and aligns with the G20’s roadmap to improve the efficiency of cross-border payments.

It aims to benefit around 5 million merchants, including small businesses in both Malaysia and Cambodia, by promoting the use of local currencies and establishing a cooperative oversight mechanism for payment systems.

Datuk Abdul Rasheed

BNM Governor Abdul Rasheed Ghaffour said,

“This MoU demonstrates both countries’ commitment to enhance cross-border payment and local currency settlement. This collaboration will deepen our long-standing cooperation with NBC for the mutual benefit of individuals and businesses in both countries. It also provides the impetus to spur greater innovation and deeper financial integration in support of regional economic development.”

Chea Serey

NBC Governor Chea Serey said,

“Today’s event marks a significant step towards enhancing cooperation between our central banks. Through the MoU, the NBC and BNM will collaborate to drive financial innovation and improve cross-border QR code payment systems aiming to boost trade activities and financial inclusion in both countries and to promote the use of local currencies in line with ASEAN objectives.”