QR Code’s Implementation for Payment and Its Regulations in Indonesia

Payment methods began to evolve in recent years. One of the most widely used is QR Code (Quick Response Code) payment. By installing the application supported by the payment provider, users can complete the transaction by scanning the QR Code. This method is expected to give transaction experience in an easier way. The latest development occurred is Bank Indonesia to issue the regulations of QR Code standard. It is also being discussed by Payment System Association of Indonesia (ASPI).

This technology is not only developed by payment provider startups but also being considered by other payment service providers; one of which is MasterCard Indonesia. MasterCard Indonesia starts to introduce the technology this year, to reach enterprise industries in areas with no EDC technology. MasterCard Indonesia will play a role as payment facilitator for banks.

Beside Mastercard Indonesia, Bank Mandiri was also reviewing the QR Code application for payment in November. As quoted from Kontan’s Senior Vice President Retail and Transaction Banking, Thomas Wahyudi, eventually the payment with QR Code would have its own segment wider than Bank Mandiri’s e-money or e-cash, because QR Code payment is different from other electronic money which balance needed a top-up before making a transaction.

“The segment will expand, the source of fund can be varied, but the payment method will use QR Code,” said Wahyudi.

Other banks are also interested in using QR Code as payment method. BCA and BTN is reportedly preparing QR Code payment method as one of payment facilities.

The application of QR Code technology also seized Bank Indonesia attention. Last November, quoted from Tempo, Bank Indonesia arranged financial transaction using QR Code. The regulation is targeted to be finished in early 2018. This regulation is expected to guarantee consumer protection amid the widespread transactions using QR Code in Indonesia. However, there has been no further details about the form and the regulation.

Meanwhile, the news on QR Code standardization was conveyed by Tcash’s CEO, Danu Wicaksana. In IndoTelko news, Wicaksana revealed that he and ASPI were still discussing about the standardization. It is declared more efficient given that during this time, QR Code players issued their own QR Code.

For additional information, Singapore Payment Council (SPC) has authorized QR Code specification to facilitate electronic payments. SGQR (Singapore Quick Response) system was designed by industry groups. They applied international QR Code protocols to match the needs. It was applied in consideration of improving interoperability between services and ensuring wider acceptance.


Original article is in Indonesian, translated by Kristin Siagian