QR Code Payment Integration Between Japan and ASEAN Set for 2025 Launch
by Fintech News Singapore March 18, 2024Japan and the Association of Southeast Asian Nations (ASEAN) are set to integrate their QR code payment systems by 2025, according to a Bernama report.
Negotiations between Japan and ASEAN nations are ongoing, with both parties keen on implementing the QR code payment system soon.
Five ASEAN countries, namely Singapore, Indonesia, Thailand, Malaysia, and the Philippines had previously signed a memorandum of understanding in 2022 which laid the groundwork for payment integration and set the stage for broader cooperation in various sectors. The central bank of Vietnam joined the initiative later in August 2023.
This latest initiative, as confirmed by Japan’s Ministry of Economy, Trade and Industry (METI), is aimed at facilitating smoother transactions and reducing the need for currency exchange, particularly benefiting the influx of tourists across these regions.
The integration project is being fast-tracked by the Cashless Promotion Council, which is tasked with creating a unified payment mechanism that bridges both domestic and international QR code services. This system is anticipated to be operational by 2024, a year ahead of the official launch of the integrated payment scheme.
Currently, Japan offers QR code payment options through platforms like Paypay and Rakuten Pay, which are restricted to online payments for registered services. The forthcoming system aims to eliminate these restrictions, enabling consumers to make payments universally across the participating countries.
