Asean planning regional payments network that could benefit migrant workers
- Project Nexus connects the various fast payment systems that countries have built for domestic transfers, such as Singapore’s Pay Now
- System could ease barriers and fees that are ‘particularly painful’ for migrant workers sending money back home, small businesses with overseas reach
Delivering a speech at the Singapore Fintech Festival on Thursday, Ravi Menon highlighted Project Nexus, a joint initiative by the Monetary Authority of Singapore (MAS) and the Bank for International Settlements, as a possible “key enabler” that could help achieve the Southeast Asian bloc’s goal.
In a nutshell, Project Nexus connects the various fast payment systems that countries have built for domestic transfers, such as Singapore’s Pay Now.
Some 60 countries already have these real-time payment systems which allow users to send money to someone in the same country instantaneously.
Still, the global average cost of sending money across the border remains at 6 per cent of the bank transfer.
Linking these real-time payment systems could ease the barriers and fees that are “particularly painful” for migrant workers who want to send money to families back home and small businesses that have an overseas reach, Menon said.
“MAS believes that Project Nexus can be a key enabler towards realising this vision. Asean is well placed to be a first-mover on this multilateral solution,” he said.