Post by : Anis Farhan

A Seamless Digital Wallet Network

In a landmark move for regional fintech integration, five ASEAN countries—Malaysia, Thailand, Indonesia, Singapore, and the Philippines—have launched the first phase of cross-border e-wallet interoperability, allowing users to make real-time payments across countries using QR codes.

Announced at the ASEAN Finance Ministers Meeting 2025 in Jakarta, this initiative is part of the ASEAN Payment Connectivity (APC) framework, developed in partnership with Bank for International Settlements (BIS) and supported by central banks across the region.

How It Works

The system allows users to pay merchants in participating countries by simply scanning national QR codes, such as:

• QRIS (Indonesia)

• PromptPay (Thailand)

• DuitNow (Malaysia)

• NETS QR (Singapore)

• QR Ph (Philippines)

No currency exchange is needed at the point of purchase—foreign exchange rates are applied automatically, and payments are settled in near real-time.

This system is live in over 2.3 million merchant outlets across Southeast Asia and works seamlessly for both tourists and local users using e-wallets like Gopay, GrabPay, Maya, Touch ‘n Go, and ShopeePay.

Economic and Tourism Impact

The integration is expected to unlock massive benefits for the region’s US$350 billion digital economy, particularly in tourism and MSMEs:

• Tourists can pay without carrying cash or setting up new accounts abroad.

• Small merchants gain access to international customers without needing expensive POS systems.

• Cross-border gig workers and freelancers can receive instant payments from clients.

According to ASEAN Digital Economy Report 2025, the initiative could add US$4.2 billion to regional GDP by 2027 through improved financial access and transaction efficiency.

Role of Central Banks and Infrastructure

The underlying system is built on a multi-currency, multi-ledger settlement infrastructure using ISO 20022 protocols. Central banks are working with private-sector clearing houses and fintech players to ensure:

• Real-time currency conversion and settlement

• Fraud detection and AML monitoring

• Cybersecurity compliance and dispute resolution mechanisms

This backbone infrastructure has been co-developed with support from Bank Negara Malaysia, Bank of Thailand, Bank Indonesia, Bangko Sentral ng Pilipinas, and the Monetary Authority of Singapore (MAS).

Challenges: Inclusion and Standardization

While the rollout is promising, several challenges remain:

• Digital literacy gaps may exclude rural or elderly users.

• Varying e-KYC rules across countries can hinder full interoperability.

• Merchant adoption in Tier 2 and 3 cities is still limited.

To address these, ASEAN is investing in awareness campaigns, merchant onboarding programs, and a Common API Standard to ease fintech integration across borders.

Next Phase: Beyond ASEAN

The project’s next phase involves expanding linkages with Japan, South Korea, and India, creating an Indo-Pacific Payment Corridor. Talks are also ongoing with UAE and Australia for extending QR payment compatibility under a broader Global Digital Finance Compact.

Additionally, ASEAN is exploring wallet-to-wallet remittance corridors, especially for low-cost cross-border labor remittances—a key demand from migrant workers in the region.

Outlook: Toward a Cashless, Connected ASEAN

The cross-border e-wallet initiative is a major leap forward in building a seamless, secure, and scalable digital payments ecosystem in Southeast Asia. It enables a cashless tourist experience, empowers SMEs, and lays the foundation for a truly connected ASEAN digital economy.

As interoperability expands and regulations converge, the region may well become a global benchmark for regional fintech integration.

Disclaimer

This article is intended for general informational purposes only. It does not constitute legal, financial, or policy advice. Readers should consult central banks or fintech regulators for specific guidance.