The announcement of Brunei’s Digital Payment Hub (DPH) has generated widespread interest, promising to simplify transactions between banks and e-wallet apps, both within the country and internationally.
Set for rollout in Q4 2024, the hub—managed by the National Digital Payments Network (ndpx)—was a key topic at the Digital Economy Forum on September 25.
While more details will be revealed during the official launch, we break down the key insights from the forum about the DPH, how it works, and what it means for Brunei.
What is the Digital Payment Hub?
The DPH is a back-end system that connects various banks and e-wallets, enabling instant transfers between platforms. Acting as a payment switch operator, it serves as a middleman to make transactions faster and cheaper.
Currently, most users in Brunei transfer money to others using the same bank or e-wallet app.
While interbank transfers are possible, they often rely on systems like Real-Time Gross Settlement (RTGS), which is typically used for large-value payments, and is relatively slower and more expensive.
The DPH, on the other hand, streamlines smaller, everyday transfers, significantly reducing time and cost.
The Digital Payment Hub will be integrated into existing apps and platform
When the DPH launches, it won’t appear as an app for download.
Instead, existing mobile banking and e-wallet apps will integrate the DPH into their systems, allowing users to make cross-platform transfers.
For instance, if you’re with Bank A, you can send money to someone with Bank B, as long as both banks utilize the DPH.
Another key feature will be the ability to transfer money using a phone number through your app.
This eliminates the need to enter long bank account numbers, provided users also sync their mobile numbers with their respective apps.
The list of Brunei banks and e-wallet apps that will be on boarded at launch will be revealed during the rollout.
While ndpx’s services are optional for banks and e-wallets, most are expected to eventually join due to the benefits of faster, cost-effective payments for their users.
What does this mean for businesses?
The cross-platform payment capability extends to businesses using different banks and e-wallet systems in Brunei.
Currently, businesses have QR codes from each platform, which will only work for that platform’s users. However, if these platforms subscribe to the DPH, businesses will be able to display a single, interoperable QR code. This will follow the national QR code standard, which is overseen and managed by ndpx.
For example, if Banks A, B, C, and D all subscribe to the DPH, they can consolidate into one interoperable QR code. But if Bank D does not subscribe, then Banks A, B, and C will share one QR, while Bank D will still have its separate code.
Today, some businesses also list different bank accounts for direct transfers instead of QR codes. If these banks are signed onto the DPH, then users don’t have to pay using the same bank as the business—they can opt for instant cross-platform transfers.
How much will cross-platform transactions cost?
The cost for users to send cross-platform payments to other users—or for businesses to receive them—will be determined by the bank or e-wallet itself.
Ndpx charges a fee to the platforms for its service, but the platforms ultimately decide how to charge their users.
Although specific fees weren’t disclosed at the forum, ndpx CEO Hafiz Haslen emphasized that the government’s initiative to set up ndpx was aimed at making cross-platform payments affordable, stating it would be counterproductive for them to be more cumbersome or expensive than current options.
What about international payments?
Since the announcement of the DPH, a common question has been about its ability to handle international payments, especially with platforms like PayPal.
Currently, Brunei residents make international payments with their bank cards or through telegraphic transfers—and businesses in Brunei can also opt for international payment gateways from local banks—but online discourse has consistently called for more affordable, simpler options.
While ndpx doesn’t guarantee PayPal’s entry into Brunei, it lays the groundwork for global payment providers to connect more easily. In the past, international platforms like PayPal needed to gain approval from the Brunei Darussalam Central Bank (BDCB) and separately negotiate agreements with each financial institution who they intended to serve.
Ndpx simplifies this by enabling global platforms to establish a single connection with the hub once they receive approval from BDCB.
Ultimately, PayPal—or any other international provider’s entry—still depends on their business strategy and interest in the Brunei market.
Ndpx aims connect Brunei to ASEAN QR code
One of the cross-border payment initiatives ndpx is pursuing is the ASEAN QR Code, which seeks to enable cross-border payments via QR code for any participating banks or e-wallets in participating countries.
The ASEAN cross-border QR payment requires:
• Participating member countries to adopt the ASEAN QR standard.
• Establishing bilateral technical connections—countries that want their systems to interoperate must establish these connections with each other.
In principle, this would mean that users of any Brunei apps—signed up to the DPH—could make payments overseas in ASEAN countries that have met the above pre-requisites.
Similarly, visitors from ASEAN countries could use their foreign apps to make QR payments in Brunei.
Ndpx CEO has confirmed that groundwork is ongoing, and could take up to 24 months to complete.
Conclusion—What to expect when the Digital Payment Hub launches and who owns it
The rollout of ndpx will happen in two phases:
• Phase 1 (Q4 2024): This phase will enable instant transfers across different banks and e-wallets using phone numbers.
• Phase 2 (2025): Additional features, including a standardized QR code for businesses and the request-to-pay feature, which will allow users to request payments from others.
• Beyond 2025: Cross-border functionality.
Ndpx is a joint venture between Brunei’s leading financial institutions—Bank Islam Brunei Darussalam, Baiduri Bank, and Perbadanan Tabung Amanah Islam Brunei—along with Darussalam Assets, a holding company that owns Brunei’s government-linked companies.
Ndpx currently has 10 employees, most of whom are Bruneian youth.
