MAS, BSP partner for cross-border payment linkages

The deal will focus on real-time and QR payment systems.

The Monetary Authority of Singapore (MAS) and Bangko Sentral ng Pilipinas (BSP) revealed a partnership that targets cross-border payment linkages. 

Linkage of both countries, real-time and QR payment systems will be the focus of the deal in order to provide low-cost border payments. 

This initiative is set to assist the remittance flows between the two countries, as a total of $2.89b was recorded in 2020. This is also expected to cater to the pre-pandemic yearly average of around 900,000 travellers between the two. 

The enhanced Fintech Cooperation Agreement builds on a 2017 agreement to expand the scope of the fintech partnership between MAS and BSP.

It also aligns with the G20’s efforts to tackle obstacles in global cross-border payments, as well as add to the Association of Southeast Asian Nations’ (ASEAN) goal of establishing regional payments integration by 2025. Both departments will also explore multilateral interoperability of these projects to further strengthen linkages within ASEAN and countries outside the region. 

MAS Managing Director Ravi Menon said that these enhancements are expected to help in fast-tracking payments connectivity between the two countries. More importantly, he added that the linking of QR and real-time payment systems is a step towards the vision of an interconnected ASEAN network.