Indonesia: The launch of the cross-border QR payment link

In short

In the spirit of the ASEAN Central Bank Governors Meeting in April 2022 (which is one of the events of Indonesia’s G20 Presidency) and the Indonesian Payments System visions for 2025 which were introduced in May 2019, Bank Indonesia launched a cooperation with Bank of Thailand that enables consumers and merchants from both countries to make and accept instant cross-border QR payments for goods and services. QRIS (Quick Response Code Indonesian Standard) and Thai QR codes will be used in this cooperation. Please see Bank Indonesia press releases here. This cooperation was formally launched on August 29, 2022, following a pilot program that started on August 17, 2021.

For more details on QRIS, please see our Previous Customer Alert.

The cooperation is aligned with the ASEAN Agreement on Electronic Commerce, which provides a set of policies, principles and rules to govern cross-border e-commerce in the ASEAN region. The facilitation and flexibility of cross-border payments is one of the pillars that will support the implementation of cross-border e-commerce objectives encompassed in the ASEAN agreement.

The core of this cooperation is to allow users in Indonesia to use their mobile payment apps to scan Thai QR codes to make payments for goods and services to merchants in Thailand. Similarly, Thai users can use their mobile payment apps to scan QRIS to pay merchants in Indonesia for goods and services. Currently, 76 payment service providers from Indonesia and Thailand support this cooperation and this number is expected to increase.

Bank Indonesia plans to have similar cooperation with other countries, such as Singapore and Malaysia. For Malaysia, the cooperation has already been in a pilot phase since January 2022 and is scheduled for full commercial launch in the third quarter of 2022. For Singapore, the cooperation is expected to be launched in the second half of 2023.

As the pandemic proves that transformation is inevitable, this cross-border QR payment linkage cooperation will certainly enable instant, secure and efficient cross-border payments. This is expected to be the first of many collaborations with other central banks, in anticipation of when cross-border travel will once again be possible and to accommodate the rapid increase in e-commerce that spans across national borders. . Hopefully it could bring more consolations to the public using QR payments. Again, Indonesia is making its payment system industry more agile to respond to globalization.

With thanks to Jonathan Edward Tobing for his assistance in preparing this alert.

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