Following the introduction of five cross-border QR payment products on the OCBC Digital app, Oversea-Chinese Banking Corporation (OCBC) anticipates to facilitate 250,000 cross-border QR payments by the end of this year. Prompted by the rise of its popularity during the Covid-19 pandemic, cross-border QR payments are fast becoming prevalent travel payment methods.
The five cross-border payment platforms incorporated into the digital app in the last 12 months include: Alipay+, UnionPay International, Thailand’s Promptpay, Malaysia’s DuitNow and Indonesia’s Quick Response Indonesian Standard. This integration grants OCBC Singapore account holders access to payment networks that include millions of merchants in over 40 countries.
“Our target is based on meeting the needs of two segments: Singapore-based travellers visiting overseas destinations for leisure and work and foreigners in our customer base visiting home,” says OCBC’s head of global consumer financial services Sunny Quek.
“With the rebound in travel, especially to China, we expect travel expenditure to grow y-o-y,” he adds, noting that foreigners may also be inclined to use their Singapore dollar (SGD) accounts when travelling to their home countries due to the strong SGD.
According to the bank, cross-border QR payments on the OCBC Digital app have grown month-on-month in number and value, averaging 65% and 80% respectively in 2023. The way OCBC sees it, QR codes are solidifying their positions in the payment landscape with their pervasive presence in the region coupled with the predicted increased travel to Mainland China. With this upward trend, there is an expected 590% growth over the next five years for QR code payments, increasing from 13 billion in 2023 to 90 billion in 2028.
“The evolution of the payment landscape, coupled with travel becoming the new normal again, has given us confidence that we will be able to grow cross-border QR transaction numbers by four times. Our partnerships with Alipay+ and UnionPay International have significantly expanded coverage for our customers who travel, especially to Mainland China,” says Quek.
See also: HSBC pulls back credit card business in China: Reuters
OCBC aims to continue to seek future partnerships, benefiting customers and solidifying OCBC Digital as the incontestable platform for travel payments.
Shares in OCBC closed 16 cents higher or 1.18% up at $13.74 on March 26.
