Bank Negara Malaysia (BNM) and the National Bank of Cambodia (NBC) have on Tuesday launched phase 2 of the cross-border QR payment linkage between Malaysia and Cambodia.

With this expansion, Malaysian travelers can now seamlessly pay Cambodian merchants by scanning the KHQR using native mobile payment application of participating financial institutions. Cambodian travelers to Malaysia can continue to make payments using the Bakong application by scanning Malaysia’s DuitNow QR, a capability introduced in phase 1, the banks said in a statement.

According to the statement, over seven million local merchants in Malaysia and Cambodia will gain access to a wider customer base, providing economic benefits to both countries.

Travelers can also enjoy instant cross-border payment through native payment applications without hassle.

BNM Governor Abdul Rasheed Ghaffour said that in line with Malaysia’s ASEAN Chairmanship, Malaysia is pleased to advance the vision of enhanced payment connectivity within the region through the latest phase of this QR payment linkage.

“Many ASEAN small businesses and individuals are set to reap the benefits of instant cross-border QR payments. This will further deepen financial integration within ASEAN economies,

“We will continue to widen reach with regional and international partners to foster an inclusive and safe payment connectivity network,” he added.

National Bank of Cambodia Governor Dr. Chea Serey said this advancement not only simplifies cross-border transactions but also unlocks immense potential for: (i) tourism, by offering Malaysian travelers frictionless payments in Cambodia, (ii) financial inclusion, by connecting SMEs and individuals to a broader economic network, and (iii) regional integration, by advancing ASEAN’s vision of a digitally interconnected community.

“This initiative is more than a technical achievement— it is a bridge between cultures, economies, and people,

“It embodies our commitment to harnessing technology for resilient and inclusive growth, ensuring that even the smallest merchant in Cambodia or Malaysia can participate in the global digital economy,” she added.

According to the statement, BNM and NBC have worked closely with local partners to enable the bilateral QR payment linkage.

The partners include Maybank as the sponsoring and settlement bank, Payments Network Malaysia (PayNet), and participating financial institutions from both countries.

The bilateral QR payment linkage also aligns with the G20 Roadmap for Enhancing Cross-border Payments.

It also supports Malaysia’s ASEAN Chairmanship priorities under the theme ‘Inclusivity and Sustainability’.

The launch took place in Kuala Lumpur on the sidelines of the ASEAN Finance Ministers’ and Central Bank Governors’ Meeting.

In a separate statement, the banks said NBC has officially joined the regional payment connectivity (RPC) initiative, further strengthening regional financial integration in Southeast Asia.

The NBC’s inclusion in the RPC follows its formal expression of interest to be part of the initiative.

The NBC announced its participation in the fourth supplemental page of the memorandum of understanding on cooperation in regional payment connectivity (MOU RPC) during the launch of phase 2 of the Malaysia-Cambodia cross-border QR payment linkage.

The NBC’s inclusion into the RPC initiative brings the total number of signatories to nine ASEAN central banks.

First established in 2022 by the central banks of Indonesia, Malaysia, the Philippines, Singapore and Thailand, the RPC initiative has since been expanded to include Vietnam in August 2023, as well as Brunei Darussalam and Lao PDR in February and April 2024 respectively.

This growing participation of the RPC initiative underscores its potential for further expansion within ASEAN and beyond to enhance collaboration on regional payment connectivity and foster greater financial integration within the region.

The RPC initiative aims to promote, faster, cheaper, more transparent and more inclusive cross-border payments.

Since its inception, it has fostered and accelerated the development of cross-border payment connectivity in the region through, among others, quick response (QR) code-based payment and fast payment modalities.

By promoting seamless cross-border transactions in the region, the RPC initiative supports broader economic activities in ASEAN, including greater market access for small and medium-sized enterprises (SMEs), enhanced trade facilitation, and improved remittance flows.

Chea Serey stated that participating in the RPC initiative will foster regional economic growth and establish a more interconnected payment system within ASEAN.

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