Cross-border payment facilitation through QR codes
In a significant shift, QR code payments have become more prevalent in various Southeast Asian markets compared to regions where near-field communication (NFC) technologies are commonly used, such as many Western markets. This trend is the focus of a recent report that examines the factors driving the use of QR codes as part of cross-border payment linkages in Asia.
The report highlights several factors responsible for the growing adoption of QR code payments in the region. Rapid digital adoption and smartphone penetration, standardization initiatives, government and central bank involvement, support from financial and fintech institutions, technological innovation and security, growing SMEs and e-commerce activities, regulatory alignment and cooperation, and expansion to wider regional and global linkages are all contributing factors.
Increasing smartphone usage and economic growth in Southeast Asia have accelerated the adoption of QR code payments, providing a practical and seamless way to transact digitally across borders. ASEAN countries including Indonesia, Malaysia, Singapore, the Philippines, and Thailand have collaboratively adopted the Indonesian Standard QR Code (QRIS) to unify QR payment acceptance and create interoperability across various digital financial services, easing cross-border transactions.
Efforts such as the PromptPay–PayNow linkage between Thailand and Singapore demonstrate active collaboration among governments and central banks to establish real-time, fast payment infrastructures that cross national boundaries. Korean banks and fintech companies have expanded QR code payment services in Southeast Asia, targeting both tourists and local consumers, aiming to tap into the region’s growing transaction volume and digital commerce ecosystem.
Providers like UnionPay use blockchain, AI-driven risk monitoring, tokenization, and biometric authentication to ensure secure and scalable cross-border QR transactions. QR-based cross-border payments facilitate transaction ease and currency exchange, which supports the growth of SMEs and e-commerce within the region, contributing to a predicted doubling of digital transactions by 2027 and significant cross-border revenue growth.
ASEAN’s Regional Payment Connectivity (RPC) project and country-specific initiatives aim to improve regional financial integration. Vietnam’s and other ASEAN countries’ participation highlights efforts to standardize payment rails while addressing cybersecurity and fraud protection concerns. Emerging efforts link ASEAN QR systems with those in Japan, China, South Korea, and even beyond to the Middle East, with examples such as Indonesia’s QRIS working with Japan’s JPQR and pilot projects extending to China.
Regarding the prospects for more QR code cross-border payment linkages worldwide, the report indicates a strong trajectory toward expansion of QR payment interoperability globally. Key drivers include the ease and cost efficiency of QR codes, their suitability for fast and contactless digital payments without the need for credit cards, increasing travel and cross-border commerce post-pandemic, and enhanced security technologies.
With projects such as the FPS x PromptPay Link between Hong Kong and Thailand and increasing regulatory support worldwide (e.g., QR standardization policies like Ethiopia’s), it is plausible we will see broader adoption of cross-border QR payment linkages beyond Asia-Pacific in the near future. Challenges remain in terms of universal QR code standardization, regulatory harmonization, and cybersecurity frameworks, but these are being actively addressed by regional bodies and payment operators.
In summary, Southeast Asia’s QR code cross-border payments are driven by regional economic integration, government and fintech cooperation, technology adoption, and SME growth. Given these factors and ongoing international efforts, the expansion of QR cross-border payment linkages worldwide is a likely and emerging trend.
As the report suggests, technology adoption, particularly QR code payments, is surging in Southeast Asia due to factors such as Smartphone usage, economic growth, and collaboration among governments, central banks, and fintech companies. This trend is leading to a prediction of a doubling of digital transactions by 2027 and significant cross-border revenue growth in the region, showcasing a strong trajectory for the future of finance technology in Asia.
