KUALA LUMPUR (Sept 19): Central banks of Malaysia and Cambodia on Thursday launched the QR payment linkage that would allow consumers and merchants in both countries to make and receive instant payments.

Under the first of the two-phase rollout, Cambodians can make instant retail payments in Malaysia by scanning DuitNow QR codes displayed by merchants using their mobile payment applications, Bank Negara Malaysia (BNM) said in a statement. The first phase was completed on Thursday.

“This successful launch of the payment linkage is made possible through the strong collaboration of various stakeholders from both countries,” BNM said.

In the next phase of the linkage, Malaysians travelling to Cambodia will also be able to pay Cambodian merchants by scanning KhmerQR using the mobile payment applications of participating financial institutions. BNM did not not provide a timeline for the launch of the next phase.

The project began after a memorandum of understanding was signed in February 2024 between BNM and its counterpart National Bank of Cambodia (NBC) to strengthen cooperation in payment system and innovation.

The QR linkage initiative will allow more than five million merchants, especially small businesses, in Cambodia and Malaysia to access a wider customer base from both countries. The initiative is expected to drive trade, boost tourism and promote economic growth in both nations, BNM said.

“This collaboration brings us closer to realising the vision of an interconnected and seamless retail payment ecosystem between Cambodia and Malaysia,” BNM governor Datuk Seri Abdul Rasheed Ghaffour said.

The connectivity would accelerate cross-border transactions and “boost economic activities across the region by leveraging on the convenience and efficiency” of QR payments, he said.

For NBC governor Dr Chea Serey, the launch reflects the strong cooperation between the central banks and partners from both countries.

“This cross-border payment initiative will play a crucial role in boosting trade activities and advancing financial inclusion in both nations, signifying an important step towards realising the vision of an Asean network of fast, efficient, secure and interconnected retail payment systems across the region,” he added.