How Southeast Asia’s QR Payment Push Is Transforming Cross-Border Trade

Across Southeast Asia, paying for a meal, booking a taxi or shopping across borders is becoming as simple as scanning a QR code. According to new research by the International Monetary Fund's Asia and Pacific Department, drawing on insights from regional central banks, the Bank for International Settlements, the World Bank and the ASEAN+3 Macroeconomic Research Office, ASEAN is undergoing a digital payment revolution that could reshape trade and financial stability in the region.

What began as a push to modernize domestic payment systems is now evolving into a broader effort to connect countries, reduce reliance on the US dollar and make cross-border transactions faster and cheaper. At the heart of this transformation is a mix of government-backed payment infrastructure and private sector innovation.

Thailand Leads the Charge

Thailand stands out as one of the region's frontrunners. The launch of PromptPay, a real-time payment system that links bank accounts to mobile numbers or national ID cards, has changed how people move money. Today, consumers can transfer funds instantly at little or no cost.

Digital payments have surged in recent years, while cash use has steadily declined. Nearly half of Thai adults now have e-money accounts. From street vendors to large retailers, QR code payments are widely accepted. The system is simple, fast and easy to use, making it popular with both customers and businesses.

Other ASEAN countries have followed similar paths. Indonesia introduced a unified QR system called QRIS. Singapore expanded its PayNow platform. Malaysia and the Philippines strengthened their own fast payment systems. Together, these efforts have built a strong digital foundation across the region.

Connecting Borders with a Scan

The next step is linking these systems across countries. Traditionally, cross-border payments have depended heavily on the US dollar and multiple intermediary banks, making transactions slower and more expensive. ASEAN countries are now working to connect their fast payment systems directly.

This means a tourist from Singapore visiting Bangkok can scan a QR code and pay in Singapore dollars, while the merchant receives Thai baht instantly. The payment happens in real time, without routing through several foreign banks. Thailand has already established several such linkages with neighboring countries.

Although cross-border QR payments still make up a small share of total transactions, they are growing rapidly. Rising travel within ASEAN and expanding regional trade are helping drive this trend.

Boost for Small Businesses and Financial Inclusion

Digital payments are not just convenient for shoppers. They are also opening doors for small and medium-sized businesses. Every digital transaction creates a record. This data can help banks assess a business's financial health, even if it lacks traditional collateral or credit history.

In Thailand, most small businesses now accept digital payments. This gives them a digital financial footprint, making it easier to apply for loans and expand operations. Cross-border digital payments also allow small firms to sell goods and services to customers in neighboring countries without complicated banking procedures.

For people without easy access to traditional banks or credit cards, QR payments offer an alternative. The IMF study finds that QR usage tends to be higher where access to bank branches and credit cards is lower. In this way, digital payments can promote financial inclusion.

Reducing Risks in a Volatile World

One of the most important findings of the research is that digital cross-border payments settled in local currencies may reduce exposure to exchange rate swings. The study shows that when currencies become more volatile against the US dollar, QR payments increase.

Because these payments are settled directly in local currencies, they avoid some of the uncertainty linked to dollar-based transactions. This could help strengthen financial resilience in a region that is deeply connected to global trade.

Still, challenges remain. Faster digital payments can be misused for fraud or money laundering if oversight is weak. The growing network of bilateral connections can also become complex. To address this, ASEAN countries are exploring broader multilateral solutions and even experimenting with central bank digital currencies for cross-border use.

The direction, however, is clear. Southeast Asia is building a modern, connected payment system that is faster, cheaper and more inclusive. If current momentum continues, the region's digital payment revolution could become a powerful engine for deeper economic integration and greater financial stability.