Challenges

"The Indonesian economy are predominantly composed by informal MSMEs firms, and prior to the digitalisations efforts of the Indonesian banks and non-banks payments players, those informal MSMEs relied on cash as the primary method of payments. In addition to that, from the perspectives of users, approximately almost 50% of the Indonesian residents did not have bank accounts. This indicates a low financial services and digital penetration in Indonesia. The payment digitalisation efforts started by local payments industry came into full effect when Bank Indonesia implemented QRIS as a standardised QR payment in 2019.

GoPay was an early adopter of QRIS and use it as a platform to accelerate the digitalisation efforts that it was already underway in its users and merchants. QRIS GoPay can be used by millions of GoPay users in millions of merchants in partnership with any payments providers in Indonesia."

Primary target

Which group does your product/service primarily target?

Description of Innovation

QRIS is a unification of various kinds of QR from a different payment system service providers using one single QR Code. It is develop under of BI's initiative of the vision and mission of Indonesian Payment System 2025 - to make a digital finance interoperable. QRIS aims to make digital payments services to be easier, faster, cheaper and more secure. GoPay serves millions of QRIS users who are connnected with millions of merchants

Results

GoPay merchants that received QRIS Payments has also widened its consumer based, and now also catering the digital customers. We have also expand the QRIS digital payment through Tokopedia platform, in December 2021, GoPay together with Tokopedia launched QRIS payment system that targets tens of thousands of stalls in the Tokopedia Partner ecosystem throughout Indonesia. This initiative is presented to help stalls that are members of Mitra Tokopedia and MSMEs in digital transactions. As of today, Mitra Tokopedia has been used by millions of traditional business activists to serve tens of millions of people in more than 500 cities/districts in Indonesia. The trend of QRIS users in GoPay mostly occurs in MSMEs. The use of QRIS is quite high because the MSME network in the Goto Financial ecosystem is growing rapidly with various business solutions. This is also driven by various efforts to educate users and business partners about the benefits of using QRIS. We also continue to educate on how to use GoPay's QRIS, for example, by activating the QRIS payment method on the GoBiz, Moka and Midtrans applications, as well as socializing the acceptance of QRIS for all GoPay payments, both offline and online merchants."

Lessons Learnt

QRIS GoPay is an outcome of a healthy digital ecosystem in Indonesia that enables payments players to produce innovations that fits the need of the market and most importantly, facilitated by the regulators. QRIS GoPay has been evolved from a simple use case of facilitating the purchase of products, into various uses cases that is demanded by the market, such as QRIS GoPay for donations, ticket payments, transportations and many other uses cases. The healthy and vibrant payment ecosystem consisting of industry innovators and supportive regulators are prerequisites for future innovation to materialised.

Technology will continue to play an important role in the financial industry. The speed of technological change will keep increasing and all players, both existing and new comers will need to continuously innovate. Thus, the collaboration between the regulators existing players and new entrants will be required to understand how new innovations alter the risk profile of the industry – positively and negatively.