The Potential and Prerequisites for ASEAN-Japan Cross-Border Digital Payments

In an article by Fulcrum, Ryan Tan Jia Yang and Katrina Navallo explore the prospect for a cross-border digital payment integration between ASEAN and Japan.

ASEAN countries have established bilateral digital payment systems connectivity, beginning with successful linkages of Thailand’s PromptPay with Singapore’s PayNow, Cambodia’s KHQR with Lao PDR’s QR, Singapore’s NETS QR with Indonesia’s QRIS, and NETS QR with Malaysia’s Duitnow.
A significant step towards multilateral connectivity is the 2022 MOU on Regional Payment Connectivity signed by the central banks of Indonesia, Malaysia, Thailand, Singapore, and the Philippines which will enable faster, more seamless and affordable cross-border digital transactions between and among the five ASEAN countries.
This initiative could eventually expand to other countries within and beyond the region. As ASEAN’s 4th largest trading partner, Japan can leverage the region’s expanding cross-border digital payment systems and further integrate with the ASEAN market.