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. This initiative, led by Japan's Ministry of Economy, Trade and Industry (METI), aims to eliminate the hassle of currency exchange for tourists and businesses alike.
METI is actively collaborating with governments and central banks across Southeast Asia to establish a seamless payment infrastructure that connects domestic and international services. This infrastructure, expected to be completed in 2024, will pave the way for a more unified QR code payment experience.
Also read: Cross-Border QR Payment Services between Singapore and Indonesia Begins
Currently, Japan relies heavily on domestic QR code payment options like PayPay and Rakuten Pay. The new system will bridge the gap, allowing users to make payments across various services and platforms throughout the region.
This initiative builds upon a 2022 memorandum of understanding signed by five ASEAN member countries (Singapore, Indonesia, Thailand, Malaysia, and the Philippines) to promote payment integration.
While Japan's non-cash transactions reached a staggering 111 trillion yen (approximately $750 billion) in 2022, QR code adoption remains relatively low at just 2.6% according to METI data.
In contrast, Southeast Asia is embracing digital payments with open arms. A survey by Fidelity National Information Services (FIS) reveals that digital payments, including QR codes, account for a significant portion of total transactions in Indonesia (28%) and Thailand (23%).
