JAKARTA (TheInsiderStories)–Bank Indonesia plans to launch the Quick Response (QR) code payment standardization by the end of this month, delayed from the initial plan of April 2018.
Bank Indonesia head of transformation Onny Widjanarko on Wednesday (23/05) said the standardization is an initial stage to control the safety of this cashless payment before the central government issues the official regulation of QR code.
The companies that already obtained the permission from the central bank using QR code need to comply with the standard. There are 12 companies that have obtained permission from the central bank using the QR code including Go-Pay, TCash, OVO, BNI Yap!, and BRI. The standardization will connect each other of these 12 companies.
Bank Indonesia appoints the Indonesia Payment System Association to set the standard. ASPI is an institution established by Bank Indonesia involving representations of all payment system industry in Indonesia. The agency is authorized in technical scope to formulate rules in the payment system industry.
QR code payment is the trademark for a type of matrix barcode that first designed for the automotive industry in Japan. It gives customers an easy and a secure way to perform payments through quick response code. QR codes would slash investment costs as it widely available for smartphones.
The QR code standardization and regulation will be part of the National Payment Gateway program that launched last year. The NPG is an electronic payment transaction system incorporating instruments such as ATM cards, electronic money, and credit cards, allowing customers to carry out secure non-cash transactions from any bank in Indonesia.
Indonesia is, in fact, lagging behind other developing countries, such as India, Bangladesh or even Palestine, which have already set in place their own integrated cashless payment.
The cashless payment will not only offer financial gains but should also feature non-financial benefits. Through the system, respective institutions will be able to obtain valuable data (that which information technology practitioners call ‘big data’) by observing public spending patterns, lifestyles, trends as well as the export-import traffic.
This is same data that the old players, namely Visa and MasterCard, capitalize on to enhance their marketing strategies. The integrated cashless payment will also enable the country to make use of ‘big data’ to develop better-targeted local e-commerce.
The ease of online payments will give the creative economy a big boost. Tax payments can also be monitored better through increased non-cash transactions.