Malaysia participating in Project Nexus POC to enable faster and cheaper cross-border payments
By Digital News Asia November 16, 2021
- Underscores commitment to future-proof key payment infrastructures
- About 1 billion real-time payments estimated to be made in Malaysia in 2021
Bank Negara Malaysia (BNM) and Payments Network Malaysia Sdn Bhd (PayNet) are collaborating with international partners on a proof-of-concept (POC) to improve the cost and speed of cross-border payments. Dubbed Project Nexus, the POC will explore the feasibility of linking the real-time payment systems in Malaysia, Singapore and the Euro area. This comprises the real-time Retail Payments Platform (RPP/DuitNow) in Malaysia, the Fast and Secure Transfers (FAST/PayNow) in Singapore, and the Target Instant Payment Settlement (TIPS) in the Euro area.
If successful, this will enable customers to send and receive cross-border payments instantly and securely.
The results, expected to be published by end-2022, will inform future development of a global network of real-time payment systems to enable fast and seamless cross-border payments. The prototypes developed under the POC will not be available for public use.
Led by the Bank for International Settlements (BIS) Innovation Hub, Project Nexus is closely aligned with the G20 Roadmap for Enhancing Cross-border Payments. Other international partners in the project are Banca d’Italia, the Monetary Authority of Singapore (MAS) and the Banking Computer Services Pte Ltd (BCS).
Malaysia’s participation in Project Nexus complements the country’s existing efforts in linking the RPP/DuitNow with other real-time payment systems in the ASEAN region. RPP/Duit Now is a real-time payment system in Malaysia that facilitates payment to be credited into a recipient’s account instantly.
A payment linkage between Malaysia and Thailand was launched in June 2021 to enable instant cross-border QR code payments between both countries. The services facilitated by the linkage will be further expanded in 2022 to support real-time fund transfers using just mobile numbers. Efforts are also underway to establish similar payment linkages with Indonesia and Singapore, that will be launched by the end of 2021 and 2022 respectively. The enhanced cross-border connectivity of such payment linkages will serve as an important enabler to support closer regional economic and financial integration.
Fraziali Ismail (pic), Assistant Governor of Bank Negara Malaysia said, “Our participation in Project Nexus underscores Malaysia’s commitment to future-proof the country’s key payment infrastructures. Building on the success of bilateral payment linkages with other ASEAN countries, this could pave the way for the RPP/DuitNow to connect with other real-time payment systems globally. This will support aspirations for faster, cheaper and more accessible cross-border payments for Malaysian residents.”
Peter Schiesser (pic), the Group Chief Executive Officer of PayNet said, “RPP/DuitNow is a key infrastructure to drive cashless payments and digitalisation in Malaysia. We project about 1 billion real-time payments will be made in Malaysia in 2021. Project Nexus provides us with a unique opportunity to contribute to the design of next-generation payment infrastructure. This will ensure Malaysia is well placed to capitalise on the outcomes of the project.”