Thailand-based Krungsri Bank ( Bank of Ayudhya ) has added Lao PDR to the list of countries where its customers can use QR ( quick response ) codes to make payments, becoming the first commercial bank to offer the cross-border service in Laos.

In an announcement, Krungsri says Thai nationals can now use the KMA krungsri app to make instant payments when in Laos. The app allows them to scan QR codes with the Lao QR code symbol at participating merchants in Lao PDR. 

Similarly, Thai merchants using Krungsri Biz Mung-Mee for corporate businesses or Krungsri Mung-Mee Shop for individual businesses can also receive payments from Lao tourists.

“The latest expansion to Lao PDR is particularly beneficial for travelers between the two countries. Tourists can now use the mobile app to make instant payments, and merchants can conveniently and securely accept payments from foreign tourists, increasing sales opportunities," says Ninlawan Jeeraboon, head of transaction banking group at Krungsri. 

The move is in keeping with Krungsri’s medium-term business plan “to strengthen the bank’s comprehensive network across Asean” while also supporting the Bank of Thailand’s commitment to fostering increased cross-border payment linkages, particularly with fellow Asean member-states.

In addition to Lao PDR, Krungsri bank customers can also make QR payments in Japan, Cambodia, Indonesia, Malaysia, Singapore, Vietnam, and Hong Kong.

Digital payment innovations

Krungsri says it recognizes the importance of developing digital payment innovations such as QR code payments through the KMA krungsri app to meet regional needs.

“This makes cross-border transactions within Asean more convenient, fast, and secure. More importantly, it strengthens the region's economic bargaining power and competitiveness,” adds Ninlawan. 

The Asean region has seen many developments in the instant payments space. Earlier this month, Project Nexus, the Bank for International Settlements-led initiative meant to enhance cross-border payments among participating countries in the region, announced that it has come up with a “comprehensive blueprint” to be used for live implementation.

Once operational, Project Nexus will standardize the way domestic instant payment services ( IPS ), whether they are banks or fintech firms, connect to one another. 

At present, an IPS operator has to build and negotiate a custom connection for every new country to which it connects. However, once Project Nexus is operational, the operator only needs to make one connection to Nexus, which in turn will allow the IPS to reach all other countries in the network. Economies taking part in the project include Thailand, the Philippines, Malaysia, Singapore and India.