The Hong Kong Monetary Authority (HKMA) and Bank Indonesia (BI) have signed a memorandum of understanding to strengthen cooperation on QR code-based cross-border payments between Hong Kong and Indonesia, as both sides seek to make transactions faster and more affordable.
The MoU aims to establish an effective cooperation mechanism to promote faster, more affordable, transparent, and inclusive cross-border payments between the two markets, the HKMA said.
Under the agreement, the HKMA and BI will hold dialogues on technical, operational and regulatory matters related to QR code-based payments.
The two authorities will also explore arrangements to facilitate interoperability between QR code-based cross-border payment systems in Hong Kong and Indonesia.
The initiative is intended to strengthen bilateral ties while supporting greater connectivity between the two financial markets.
QR code-based payment systems have expanded across Asia as central banks and financial authorities seek to improve the efficiency of retail payments and reduce the costs associated with cross-border transactions.
The cooperation between the HKMA and BI will focus on establishing the arrangements needed to support interoperability, including discussions on technical and operational requirements as well as relevant regulatory issues.
The MoU does not itself establish an operational cross-border payment link, but provides a framework for the two authorities to work together and explore mechanisms that could enable such connectivity.
The agreement comes as Asian economies pursue greater integration of their domestic payment systems to facilitate cross-border commerce and payments.
For consumers and businesses, interoperable QR payment systems can allow payments to be made across borders using participating domestic payment platforms, potentially reducing the need for separate payment arrangements.
The HKMA and BI said their cooperation would seek to promote cross-border payments that are faster, more affordable, transparent and inclusive.
The two authorities will continue discussions on the technical, operational and regulatory aspects of QR code-based cross-border payments as they explore potential interoperability arrangements between Hong Kong and Indonesia.