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Business Times
04-08-2025
- Business
- Business Times
Asean's QR linkage push to go local could chip away at greenback's grip
[HO CHI MINH CITY] Armed with just his phone, Singaporean digital nomad Bobby Liu pays for coffee across Asia by scanning QR codes from Thailand's PromptPay, Indonesia's QRIS and Malaysia's DuitNow – all through his local banking or e-wallet apps, no cash or cards needed. Now based in Hanoi, he's eyeing Vietnam's entry into this cross-border payment club, as it is linking up with Singapore, and the rest of Asean, to enable instant QR transactions across millions of merchant touchpoints. 'Imagine what that kind of instant payment can do for small businesses – it will significantly improve their cash flow,' said Liu, a fintech entrepreneur and former venture capitalist. Such instant payment solutions, he said, will be key to boosting South-east Asian economies, which are dominated by small and medium-sized enterprises (SMEs). He also expects these cross-border innovations to take a chunk out of legacy services for money transfers such as the US's Swift network and credit card rails like Visa and Mastercard, as they offer faster, cheaper cross-border payments settled directly in local currencies, bypassing the US dollar as an intermediary. Leader in digital payments Over the past few years, the success and speed of implementing cross-border QR payment linkages in South-east Asia have been buoyed by the maturity of mobile payment penetration and national QR standards within each respective market, positioning the region as a leader in digital payments, experts say. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up According to a DataReportal report, as at February this year, QR code payment adoption among Internet users aged 16 and above in Malaysia, Thailand, Vietnam, and Singapore exceeded the global average of 50.8 per cent, with Malaysia (66.1 per cent) and Thailand (61.5 per cent) ranking just behind China (67.4 per cent) globally. In an effort to expand the growth beyond domestic markets, the Regional Payment Connectivity initiative was launched in 2022 by five Asean member states – Singapore, Indonesia, Thailand, Malaysia and the Philippines. Since then, Vietnam, Laos, Brunei and Cambodia have been added to the initiative. Its focus in the past three years has been to enable fast, seamless and more affordable cross-border payments in local currencies through standardised and interoperable QR codes, especially for retail transactions of small businesses, tourists, and migrant workers. This has required bilateral efforts between each pair of countries to ensure technical compatibility and compliance with their respective regulatory frameworks. 'A single QR payment system across the region would offer a real alternative to US-based payment networks for retail users and small businesses,' said Nawazish Mirza, professor of finance at Excelia Business School in France. 'They can chip away at the dollar's dominance in daily cross-border spending and help boost the use of local currencies over time.' Advancing local currency use In the joint statement at the 42nd Asean Summit held in May 2023, the 10-member bloc called for regional payment connectivity and promoted local currency transactions to support regional economic growth as well as strengthen financial resilience and integration. According to the 2023 policy position paper of Asean+3 Macroeconomic Research Office (Amro), the introduction of cross-border QR linkages between members, along with improvements to real-time gross settlement systems, offers significant potential to facilitate local currency transactions, which could mitigate the region's reliance on foreign currencies. Syed Ahmad Taufik Albar, group chief executive of community financial services at Maybank, underlined the benefits of such payment connectivity in areas like cross-border trade among micro-enterprises and SMEs whose products have high contents of domestic and Asean inputs, as well as in intra-Asean foreign direct investment and tourism. 'A successful implementation of a cross-border QR system across Asean's 10 member states will facilitate deeper Asean integration,' he said. This year, the position was highlighted again at the 46th Asean Summit in Kuala Lumpur, with the bloc's Economic Community Strategic Plan 2026-2030 noting that Asean will 'promote the use of local currencies to reduce the region's vulnerability to exchange rate fluctuations and external economic and financial shocks'. The strategic plan was developed during a period when the US dollar – traditionally dominant in global trade and investment – had fallen to its lowest levels in several years, and the US-led tariff hikes forced nations to engage in prolonged trade negotiations. Interest from Asian powerhouses The payment connectivity has now witnessed strong interest from Asian powerhouses like China and Japan to plug their digital payment networks into the Asean ecosystem, paving the way for better usage of local currencies for intraregional transactions and a step away from US-dominant systems. Last year, Japan's Ministry of Economy, Trade and Industry said it is working to ensure the nation's domestic JPQR payment system is compatible with the QR standards in seven Asean countries. The monetary collaboration between China and its Asean partners has also deepened, with initiatives such as bilateral currency swap agreements and the rollout of cross-border QR code payment linkages. Following the successful two-way QR payment connectivity with Cambodia earlier this year, China is advancing similar models through government-to-government cooperation across the South-east Asian region, with Vietnam, Indonesia in the pipeline. In May, Bank Indonesia announced that Indonesian citizens will be able to make transactions using the rupiah currency in China and Japan through its cross-border QR payment system from Aug 17 this year. Beyond government efforts, private financial institutions such as banks, digital payment firms and e-wallet operators are also playing a role in expanding the cross-border connectivity initiative. CBDC as the next opportunity Mirza believes that despite Asean's significant progress in regional QR payment connectivity, these systems are unlikely to replace Swift or major card networks for large-scale cross-border corporate transactions in the near term. 'To move local currency usage into large trade and investment flows, central bank digital currencies (CBDC) are now taking centre stage,' he added. Projects like mBridge have already piloted the use of CBDCs for cross-border payments among five participating central banks, including the People's Bank of China and the Bank of Thailand, with over 25 other central banks – such as those of Malaysia, the Philippines, and Indonesia – serving as observers. The project has entered the minimum viable product phase since 2024. By utilising the distributed ledger technology and smart contracts, CBDCs could reduce the need for financial intermediaries in cross-border payments and automate high-volume transactions in local currencies, significantly reducing both transaction speed and cost, Amro noted in its papers published in June 2025. Some 90 per cent of central banks were reportedly engaging in work relating to CBDCs, with China taking the lead by introducing e-CNY for domestic use. 'The speed of wider adoption will depend on progress in regulation and technology. Still, the direction is clear,' Mirza said. 'CBDCs are poised to become a key component of the region's next wave of financial integration.'
Yahoo
23-07-2025
- Business
- Yahoo
Real-time payments: The new standard for cross-border finance
Real-time payments (RTPs) are quickly becoming the heartbeat of modern finance. Their promise goes far beyond speed, offering financial institutions unprecedented transparency, lower operational costs, and improved liquidity management. GlobalData research predicts there will be 575.1 billion real-time transactions by 2028 – accounting for 27.1% of all electronic payments globally. This boom signals a dramatic shift in how money moves. For institutions handling cross-border payments, RTPs are becoming the infrastructure standard – a crucial enabler of efficiency, resilience, and inclusion. As financial ecosystems race to deliver seamless services, the institutions that adopt real-time infrastructure will be best positioned to compete, scale, and serve their customers in ways traditional payment rails cannot. Real-time, real-world impact The narrative around RTPs is shifting from domestic convenience to international transformation. In Southeast Asia, cross-border RTP corridors like Singapore's PayNow and Thailand's PromptPay have redefined expectations, enabling consumers and businesses to send funds instantly and securely across borders. India's UPI link-up with the UAE further reflects how real-time connectivity is unlocking new trade and remittance opportunities. These bilateral integrations represent more than technical progress – they show how real-time rails can serve as the foundation for regional economic development. By bypassing correspondent banking chains and reducing reliance on pre-funded Nostro accounts, RTPs reduce settlement friction and cut costs, making payments more accessible for SMEs, diaspora communities, and fintech challengers alike. Beyond transfers, RTPs are also transforming liquidity management. Financial institutions can now optimise cash positions in real time, without waiting for batch settlements or end-of-day reconciliations. This improves capital efficiency and gives even smaller institutions tools once limited to global banks – enabling fairer competition across the board. Three forces shaping the future of RTPs Interoperability and regulatory convergence: Despite the progress, global RTP adoption remains uneven. Differing regulatory frameworks, AML requirements, and data standards often stand in the way of full interoperability. But signs of convergence are emerging. The EU's Instant Payments Regulation (IPR) is pushing institutions to support instant transfers, with the removal of the €100,000 cap in 2025 set to accelerate adoption. In the US, the launch of FedNow is laying the groundwork for more competition and cross-rail integrations. Risk and fraud management: The speed of RTPs introduces a paradox: while faster settlement boosts efficiency, it also reduces the window to detect and prevent fraud. Financial institutions must now pair RTP with advanced fraud analytics – using AI and real-time transaction scoring to identify anomalies before funds clear. Solutions that incorporate behavioural analysis, geo-location triggers, and multi-layered verification are becoming essential. Alternative digital rails: As traditional RTPs scale, stablecoins and blockchain-based systems are emerging as complementary rails. Stablecoins like USDC and USDT provide instant, transparent settlement across borders – with the added benefit of 24/7 availability. As Clear Junction has seen in our own product rollouts, demand for regulated, fiat-backed digital payment methods is rising fast. These tools aren't just for crypto companies anymore – they're becoming mainstream infrastructure for businesses that require speed, visibility, and control across jurisdictions. Unlike RTPs, which typically operate within domestic or regional banking frameworks, stablecoins operate on global, decentralised networks. This makes them especially attractive for international payments that require continuous uptime, predictable settlement speed, and finality. Businesses dealing with round-the-clock marketplaces – such as crypto exchanges, ecommerce platforms, and cross-border B2B services – can benefit from the always-on nature of stablecoins. That said, stablecoins and RTPs are not in competition – they serve different but complementary purposes. RTPs excel in providing structured, regulated, and bank-integrated pathways, often with deeper consumer protections and established dispute resolution mechanisms. Stablecoins, meanwhile, offer programmable capabilities, faster global reach, and operational efficiency, especially in underbanked or high-cost corridors. The real power lies in how these systems integrate. The next generation of financial infrastructure will not rely solely on traditional rails or decentralised alternatives but will combine the best of both. Institutions that embrace hybrid models – using RTP for regulated domestic flows and stablecoins for agile, cross-border liquidity – will gain an edge in both compliance and customer experience. Clear Junction is actively building these bridges, supporting clients who want to offer stablecoin-based services without stepping outside regulatory frameworks. Our infrastructure is designed to enable fiat-to-stablecoin conversion, on-chain settlement, and compliance-aligned transaction monitoring. This gives institutions confidence to operate in the shifting landscape. Why cross-border RTP infrastructure is a competitive advantage Real-time payments are transforming operations and reshaping how financial institutions position themselves globally. In a world where every second counts, speed becomes strategy. With real-time capabilities, institutions can: Serve customers instantly, reducing churn and boosting satisfaction Streamline treasury operations through real-time cash forecasting Support embedded finance use cases with precise, programmable money flows Meet compliance obligations with enhanced transparency and auditability Importantly, RTPs also support financial inclusion. By removing delays and reducing fees, they empower individuals – especially in emerging markets – to participate more fully in the global financial system. Migrant workers, small businesses, and digitally underserved populations all stand to gain from systems designed around instant access and equitable participation. Our role in this evolution is to provide the backbone infrastructure that makes real-time financial services possible – even in markets where traditional players hesitate to innovate. We focus on enabling interoperability, ensuring compliance, and empowering clients with tools that are resilient, scalable, and future proof. From faster payments to smarter financial systems The rise of real-time payments marks a new era in cross-border finance – one where speed, security, and simplicity converge. The institutions that embrace RTP infrastructure today will be the ones leading tomorrow's financial services landscape. We believe that RTP innovation must be both inclusive and intentional. It's not enough to move faster; we must move better – with infrastructure that's transparent, interoperable, and designed to elevate the entire ecosystem. The future of finance is being written in milliseconds, and those ready to operate in real time will shape what comes next. Nina Papazyan, Director of Product and Banking Relationships, Clear Junction "Real-time payments: The new standard for cross-border finance" was originally created and published by Electronic Payments International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bangkok Post
23-07-2025
- Business
- Bangkok Post
House passes weekly retirement lottery bill
The House on Wednesday passed an amendment bill allowing people aged 15 and over to buy tickets in a weekly retirement lottery, with the money saved up and accessible at age 60. The bill, which amends the National Savings Fund Act, received 427 votes of support, with one against, three absentions and four no-votes. Under the legislation, retirement lottery tickets will be sold at 50 baht each for weekly draws at 5pm on Fridays. There will be five first prizes of one million baht and 10,000 second prizes of 1,000 baht to each winner. Won prizes will be transferred to the lucky buyers' PromptPay account. The money people who do not win spend on the lottery will be automatically deposited into their savings account at age 60. They will get all the spent money back plus returns from the National Savings Fund. People older than 60 years can also buy the retirement lottery and they will get back their money plus returns back in five years. If they have died in the meantime, the beneficiaries of their estate will inherit the money Before the vote on Wednesday, most MPs spoke in favour of the retirement lottery legislation, saying that Thais who love to buy lottery tickets could simultaneously build up savings. Deputy Finance Minister Paopoom Rojanasakul told the House that ticket purchases will be capped at 3,000 baht a month for each person, to prevent the rich from buying up the lottery and give equal access to everyone. The retirement lottery will benefit economic development, he said. The government plans to launch it in the fourth quarter of this year. The bill now goes to the Senate.
Business Times
15-06-2025
- Business
- Business Times
Latin America a potential next market for startups in South-east Asia
[SINGAPORE] Startups in South-east Asia looking for new markets to expand to could find opportunities halfway around the world in Latin America (Latam), market players say. That is because the regions share similarities in demographics, growth potential and regulatory support. Latam's median age is 30.9 years old, similar to South-east Asia's 30.4 years, a report by venture capital firms Saison Capital and Valor Capital showed. This is an important metric, said Looi Qin En, a partner at Saison Capital, which is the corporate venture arm of Japanese financial services provider Credit Saison. 'Thirty years old is not just a young population – it is a young population that is actually employed and has growing disposable incomes,' Looi told The Business Times. Latam also has a growing middle class which is spending more on goods and services, driving demand for everything from housing to technology. Brazil, for instance, has had its spending increase 5.2 times to US$1.6 trillion from US$303 billion, the Saison and Valor report indicated. Besides demographics, both Latam and South-east Asia have strong regulatory support for financial services, smoothing the way for innovation in the sector. For example, there are instant payment systems such as Fast and Secure Transfers in Singapore, PromptPay in Thailand, and Pix in Brazil. Some South-east Asian startups, including data analytics platform Credolab and financial software provider Moneythor, have also noticed the potential and set up shop in Latam. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up Indonesia and Brazil Indonesia and Brazil are the largest economies in South-east Asia and Latam, respectively, and these markets are where the biggest potential lies. They also have the largest populations in their respective regions, with Brazil's 2024 gross domestic product standing at US$2 trillion and Indonesia's at US$1.4 trillion. The average daily time spent online was 553 minutes in Brazil and 462 minutes in Indonesia, based on Saison and Valor's report. Looi noted that despite 'all this innovation', there are still several gaps – 'and a lot of the gaps are the same'. The lack of access to credit, for example, is an issue in both Indonesia and Brazil, priming fintech for growth in these regions. In particular, micro, small and medium enterprises (MSMEs) as well as retail customers face difficulties with these countries' credit rating systems. 'Essentially, what that creates is a huge opportunity to go in and solve the same problems using a lot of the same products,' said Looi. However, South-east Asia and Latam are typically not viewed as potential expansion markets for each other, possibly due to an absence of direct flights between the two regions. Still, Saison Capital recognised their similarities, leading the firm to open offices in Brazil and Mexico. Besides hiring local teams, it has set aside US$100 million for investments in each market. Like South-east Asia, Latam is also diverse. For example, while Spanish is the official language in most Latam countries, it is Portuguese in Brazil, and each market also has its nuances. Understanding these differences and thinking regional is essential for startups to find success there, said Bruno Batavia, principal at Valor Capital. 'In terms of addressable markets, they already have to think about regional strategy in Latam – starting, for instance, in Columbia, then Peru, then Argentina. They already have to start their business in different countries,' he said. Both Saison and Valor hope to facilitate more conversations and understanding between the South-east Asian and Latam markets. In particular, Saison Capital 'can act as the bridge... because we are committed to each market in the sense that we are not just tourists – we don't just have a small branch office and two people there', said Looi. As for Latam startups crossing over to South-east Asia, Batavia notes that this is already happening organically, rather than venture capital firms like Valor pushing their portfolio companies to make the leap. Brazilian digital bank Nubank, for instance, last year invested US$150 million into Tyme, leading the latter's Series D funding round, which raised US$250 million. Tyme is a digital bank which operates in the Philippines via kiosks rather than branches to serve its target customers. Its regional expansion plans include offering credit products to MSMEs in Vietnam, and acquiring a bank to start operations in Indonesia. 'Maybe the next frontier could be South-east Asia, because there's a lot of opportunities and similarities,' said Batavia.
New Straits Times
22-05-2025
- Business
- New Straits Times
Age of Asean: Building trust in Southeast Asia's digital future
As Asean is positioning to be the heart of digital economy, fostering trust is key in reaping the benefits of growing digitalisation and further empowering the vulnerable segments of the population. In the bustling streets of Jakarta, 50-year-old Siti sits behind her food stall, where the aroma and sizzle of fried rice and grilled satay mingles with the hum of passing motorbikes. With a range of digital food delivery and e-commerce platforms helping her connect with more customers, business has never been better. Siti is just one of 70 million micro entrepreneurs driving economic growth in the Asean region. Over the last two decades, the region has seen its real GDP grow by five per cent annually, reaching US$3.8 trillion. in 2023, making it the fifth-largest economy globally. With digitalisation empowering microenterprises like Siti's, it is no surprise that Asean's digital economy is poised to reach almost US$2 trillion by 2030. A foundational piece of this growing digital economy is the proliferation of instant payment systems (IPS), more recently, the rapid adoption of low-cost national QR payment channels. From Indonesia's QRIS to Cambodia's KHQR and Thailand's PromptPay, Asean has swiftly adopted the digital way to pay, with the share of digital payments to gross transaction volume already surpassing cash with just 48 per cent in 2022 to about 56 per cent in 2024. With payments transmitted directly to the merchant's digital accounts, microenterprises can now easily manage their books, helping them monitor the growth of their business. Asean continues to make strides in building and expanding cross-border QR payment linkages. Through the commitment and hard work of the Asean Working Committee on Payment and Settlement Systems (WC-PSS), several Asean countries – Cambodia, Indonesia, Laos, Malaysia, Singapore, Thailand, and Vietnam – are now able to conduct cross-border QR payment or person-to-person funds transfers. This translates into bigger business opportunities for microenterprises. Yet despite the increasing digital savviness, microenterprises still face hurdles in accessing much-needed financing. This is exacerbated by microenterprises' mistrust in the digital ecosystem due to cases of fraud, hidden fees, and lack of recourse, which could potentially undermine their growth. In Indonesia, for example, only 41 per cent of merchants using QRIS completed at least one transaction per month, and 18 per cent remained dormant, largely due to trust erosion from unexpected charges and unresolved disputes. It is therefore imperative to build and ensure MSMEs' continued trust in digital payments and the broader financial ecosystem. The United Nations' Better Than Cash Alliance's Trust Quotient Policy Toolkit, which was developed together with the Asean Working Committee on Financial Inclusion (WC-FINC) and noted by Asean Ministers and Central Bank Governors, reflects the region's collective commitment to this vision. Focusing on fraud, hidden fees, and lack of recourse, the Trust Quotient Policy Toolkit provides policy and regulatory recommendations to promote clear pricing, accessible dispute resolution, and transparent data practices, which will then help ensure micro-merchants confidently adopt digital payments in a safer, more accountable ecosystem. Ensuring quick and seamless recourse mechanisms, particularly for small-value disputes, is critical for fostering trust as delays or unresolved issues can significantly damage confidence. Programmes such as the 'BOB' (BSP Online Buddy) chatbot initiative by Bangko Sentral ng Pilipinas showcase how technology can simplify dispute resolution and build trust. Similarly, the Philippines' Paleng-QR Ph and Indonesia's QRIS SIAP have helped merchants through financial literacy, streamlined tools, and responsive support. Simplified data privacy disclosures can further empower merchants to navigate digital systems confidently. Moreover, integrating support for digital financial services into existing MSME development programmes can be transformative. Indonesia's Jakpreneur program, for instance, onboards merchants to digital platforms but also provides training in financial literacy and business management. For Siti, the success of her business relies not just on the convenience of digital payments but her trust in continued use of digital payments which grants her a formal financial history. By addressing challenges such as hidden fees, lack of recourse, and data privacy concerns, Asean can ensure that entrepreneurs like Siti feel confident in trusting and embracing digital transformation and ensure that no enterprise is left behind.
