Singapore’s PayNow and Thailand’s PromptPay launch cross-border payment system
In a world first, Singapore and Thailand have linked their real-time payment systems, PayNow and PromptPay, allowing international money transfers between the two countries in minutes.
The Bank of Thailand (BOT) and Monetary Authority of Singapore (MAS) on Thursday launched a link between PromptPay of Thailand and PayNow of Singapore, marking the world’s first bridge between national real-time retail payment systems.
This new cross-border integration enables international money transfers in minutes and could pave the way for a network of cross-border payments with other ASEAN countries.
The link allows clients of participating banks in Thailand and Singapore to transfer funds up to THB 25,000 or S $ 1,000 per day across the two countries, simply using a mobile phone number.
It also aims to cut remittance costs in half and be more upfront about pricing. The Singapore Monetary Authority aims to establish similar partnerships with other ASEAN countries in the coming months.
The participating banks have undertaken to compare their fees against the market. Fees will be charged at an affordable price and displayed transparently to senders before they confirm their transfers.
The PromptPay-PayNow link is a key collaboration under ASEAN’s payment connectivity that was launched in 2019 and closely aligns with the efforts of the G20, the Financial Stability Board and other international bodies. standardization to facilitate faster, cheaper, more inclusive and more transparent exchanges. – the terms of payment at the border.
BOT and MAS will gradually scale the PromptPay-PayNow link to include more participants and expand transfer limits to facilitate business transactions.
The experience will be similar to how PromptPay and PayNow domestic transfers are done today, where senders can use their mobile banking or payment apps to initiate money transfers instantly and securely, at any time of the day. the day. Transfers will be completed in a matter of minutes, which is a marked improvement over the average of 1 to 2 business days required for most cross-border transfer solutions.