Travelers, rejoice! Japan and the Association of Southeast Asian Nations (ASEAN) are set to simplify cross-border payments by integrating QR code payment systems by 2025. The initiative, led by Japan’s Ministry of Economy, Trade and Industry (METI), goals to eliminate the trouble of currency exchange for each tourists and businesses.
METI is actively working with governments and central banks across Southeast Asia to ascertain a seamless payment infrastructure that connects domestic and international services. This infrastructure, scheduled for completion in 2024, will pave the best way for a more unified QR code payment experience.
Read also: Launch of Cross-Border QR Payment Services Between Singapore and Indonesia
Currently, Japan relies heavily on domestic QR code payment options reminiscent of PayPay and Rakuten Pay. The recent system will bridge that gap by allowing users to make payments through quite a lot of services and platforms across the region.
The initiative builds on the 2022 MOU signed by five ASEAN member countries (Singapore, Indonesia, Thailand, Malaysia and the Philippines) to advertise payments integration.
While the entire value of cashless transactions in Japan is anticipated to succeed in a staggering 111 trillion yen (about $750 billion) in 2022, the adoption rate of QR codes stays relatively low at just 2.6%, in line with METI.
Southeast Asia, then again, is embracing digital payments with open arms. Research by Fidelity National Information Services (FIS) reveals that digital payments, including QR codes, make up a good portion of all transactions in Indonesia (28%) and Thailand (23%).
