The countries have rolled out a cross-border interoperable quick response code transaction connection.
The Bank of Thailand and the State Bank of Vietnam have launched a new QR code payment link between the two countries to allow cross-border transactions.
The interoperable quick response code is meant to make transactions easier to complete between the countries.
The QR code payment link will allow for cross-border payments to take place. Moreover, it will make it possible for the two countries to be able to use their local currencies with each other. Through this new connection, the financial markets in both countries are expected to be able to see enhanced capital flow. It is also expected to provide the regional economies with meaningful stimulus.
“This linkage also represents another milestone for the ASEAN Payment Connectivity initiative, which aims to connect the payment services of ASEAN countries using new financial technology to help foster financial integration and sustainable growth in the region,” the central banks said.
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The project’s first phase will let Thai tourists use the QR code payment link with their smartphones.
This way, they will be able to purchase goods and services in Vietnam and pay for them using the interoperable quick response codes. Then, the same can be true for Vietnamese tourists traveling in Thailand. In 2019, there were about 1.5 million people who travelled between the two countries.
The countries’ central banks said that it would be possible for tourists from either company to be able to pay for things in their own currencies using QR code scans. They also stated that this looks as though it will be only the start of the project, as other banks have also expressed interest in joining. Among those that would like to take part in this project include the CIMB Thai Bank, the Bank of Ayudhya in Thailand, the Vietcombank, the Krung Thai Bank, Kasikornbank, and the Siam Commercial Bank.
The QR code payment link will make it possible for transactions to be completed far more securely and cost-efficiently than alternative methods that have been used until now. This is only expected to improve in coming years with further innovations.