Bank Indonesia has launched the Quick Response (QR) code payment standardization to support cashless payment in the archipelago. Head of transformation fro the Bank Onny Widjanarko, 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.
The central bank has appointed the Indonesia Payment System Association, an institution established by Bank Indonesia involving representations of all payment system industry, to set the standard. The agency is authorized in technical scope to formulate rules in the payment system industry.
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.
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.