Indonesia is pushing for a small business digital payment revolution

Bank Indonesia (BI) recently announced that all mobile payment providers are to replace QR codes with the standardized QRIS (Indonesian Standard QR Code).

This would provide a single, integrated platform for all transactions made using QR codes, even if they come from different e-wallet providers.

As of February, approximately 2.7 million merchants across the country have started using the QRIS. Merchants are adopting the code rapidly – just in Jakarta, the number of merchants using QRIS was approximately 620,00 people, more than a threefold increase from last August.

Despite having the numbers, the government is not having much luck convincing micro-businesses to jump onto the cashless train, let alone QR code transactions. BI Jakarta financial management director Luthor Tapiheru said that small businesses are still unaware of how the QRIS can benefit them. For one, he said, it will help them keep a record of transactions.

“Banks won’t provide loans to businesses that don’t have transaction records. With the QRIS system, micro-businesses can use recorded transactions to apply for loans and gain additional capital.”

Aside from providing micro-businesses with financial access, Tapiheru also mentioned that QRIS has a cap of US$139, making it suitable for small business transactions.

Read More at https://techwireasia.com/2020/03/indonesia-is-pushing-for-a-small-business-digital-payment-revolution/

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