The Bank of Korea and Bank Indonesia have announced plans to launch a cross-border QR code payment system in April 2025.
Following this announcement, the Bank of Korea and Bank Indonesia have announced plans to launch a cross-border QR code payment system in April 2025, aiming to give travellers the possibility to make payments in local currencies without currency exchange.
The service is expected to become available at merchants in both countries following a local currency transaction framework established under a memorandum of understanding signed by the two central banks in July 2024. The system allows users to complete transactions via QR codes, eliminating the need for foreign exchange conversions at point of sale.
Reducing transaction costs for bilateral trade
According to the Bank of Korea, the infrastructure is designed to reduce foreign exchange conversion fees and transaction costs for cross-border payments. The central bank stated the system is expected to support bilateral trade, tourism, and consumer spending between the two countries.
The QR-based payment mechanism enables interoperability between domestic payment systems in South Korea and Indonesia, allowing customers to scan codes generated by merchants in either jurisdiction. Settlement occurs in local currencies, with the central banks facilitating the exchange process through the established framework.
Officials of the Bank of Korea and Bank Indonesia also reviewed the implementation progress during a meeting in February 2025, confirming readiness for the April launch and committing to ongoing coordination.
Expansion plans across ASEAN markets
The Bank of Korea has indicated plans to extend the system to online payment environments, though no specific timeline has been provided. The central bank is also exploring the possibility of expanding the QR code payment framework to additional Association of Southeast Asian Nations member states.
The initiative forms part of broader regional efforts to facilitate cross-border payments and reduce reliance on traditional correspondent banking channels. Similar QR code interoperability projects have been launched across Southeast Asia in recent years, connecting domestic payment systems to enable secure transactions for travellers and businesses.
