Singapore, Malaysia’s central banks to link PayNow and DuitNow

The central banks of Singapore and Malaysia have announced plans for a phased linkage of their respective real-time payment services.

The first phase of linking Singapore’s PayNow and Malaysia’s DuitNow will launch in the fourth quarter of 2022. The move will pave the way for participating financial institutions to make real-time fund transfers between Singapore and Malaysia using just a mobile number.

MAS headquarters in central Singapore / Photo credit: Tech in Asia

The linkage will allow the large number of individuals sending money between Singapore and Malaysia, which amounted to S$1.3 billion (US$960 million) in 2020, to have a more seamless remittance experience. Customers will also be able to make retail payments by scanning Nets or DuitNow QR codes, the Monetary Authority of Singapore (MAS) and Bank Negara Malaysia said in a joint statement.

Following the launch, the two central banks will work to expand the features of the PayNow-DuitNow linkage.

According to the statement, “Both regulators will also explore the feasibility of integrating innovative features such as distributed ledger technology-based solutions to catalyze greater efficiencies in payments clearing and settlement between participating banks.”

The announcement comes close on the heels of MAS introducing a similar linkage plan with the Indian central bank’s real-time payment service by July 2022.

MAS also recently teamed up with the Securities and Exchange Commission of Thailand to shore up cross-border investment opportunities via a depositary receipts linkage between the two countries.

 Currency converted from Singapore dollar to US dollar: US$1 = S$1.35.