Beyond cash, the Indonesian payment trend is shifting to the digital system. QR payments have experienced rapid growth in recent years, driven by the increasing adoption of smartphones and the standardization of QR code payments in Indonesia since 2019.
Paying with a QR code system becomes easier since customers can pay by scanning the QR code from merchants. From street food stalls to online in-app purchases, QR payments have become one of the leading digital payment methods in Indonesia. Learn more about the payment through this article.
About QR Payment
QR Payment is an online payment method that allows customers to pay their invoices by scanning a specific QR code. Customers need to scan the code using their preferred mobile payment app, such as a mobile banking or e-wallet app.
The QR code to accept payment used to be specific for each payment service provider. For instance, a QR code from e-wallet A is only applicable to be paid using e-wallet A. This condition makes business owners need to process various QR codes from various providers to adapt to the customers’ needs.
But since 17th August 2019, all QR code payments have been unified by an integrated innovation called QRIS (Quick Response Code Indonesian Standard). Bank Indonesia initiated this innovation to streamline the transaction process and boost financial inclusion across the country.
The QR Payment Growth
QR payment has become a new payment trend since it was launched as QRIS in 2019. From street food stalls to boutique stores, QRIS is easily found to carry out daily transactions. But why is this payment chosen and well accepted by Indonesians? Let’s break it down here:
1. One QR For All
This QR payment innovation unifies all of the QR payments in Indonesia which creating better convenience and effectiveness for both customers and business owners. Customers are able to scan the QR code with any payment app they prefer.
On the other hand, business owners also do not need to create various QR codes from various banks, but one integrated QR code instead. This condition also creates an easier reconciliation process for the business’s financial documentation.
2. Customer Payment Behaviour
Modern payment behaviour has shifted from offline to online payment methods. Massive internet penetration drives customers to pay their daily invoices using online payment methods from their smartphones, even when they are shopping inside offline stores.
This payment convenience makes younger generation customers don’t even need to take their wallets out since all of their transactions are done from their phones. Physical cash transactions are slowly decreasing, and some stores even apply cashless payment only.
3. Adopting Automation for Small Businesses
The automation process used to be perceived as exclusive and applicable for enterprises’ business. But technology growth makes it possible for smaller businesses to accept online payments using QRIS.
Small businesses’ payment profile generally avoids the tech integration process and rely on convenience for daily payment acceptance. QRIS fits this condition optimally by simplifying the KYC process and providing transaction data record automation for all businesses.
Also read: Stop Losing Money: The Hidden Cost of Manual Payment
4. Cut Down Line in Peak Hours
Calculating physical cash manually is quite a struggle, and compiling petty cash stock is another one. Complicated physical cash transactions, including changes and fake money checking, take a longer time to process and have a greater chance of making the line longer.
QRIS creates an easier flow for customers to pay for their orders from their smartphones, and the cashier can check the payment success notification to verify the transaction. This can cut down the line in peak hours and create better customer service for the business.
5. Government Initiative
We can not overlook Bank Indonesia’s massive efforts in how QRIS has successfully been accepted in the Indonesian payment landscape. Bank Indonesia actively promotes this payment innovation as a core component of its vision for a cashless society and greater financial inclusion.
Supportive policies such as a lower MDR rate for QRIS and standardized regulation for all payment providers also contribute to how businesses of all sizes to connect to this payment channel.
6. Easier Expense Tracking
Aside from businesses, customers also get benefits from using online payments during their daily transactions. This technology enables them to record and track their daily expenses effectively.
Monthly cash flow is also easier to manage, and it becomes one of the reasons why online payments are chosen by customers, especially for the younger generation with tech-savvy and concerned about their personal finances.
7. No Additional Account Needed for Customers
The customers do not need to create a new dedicated account to pay using QRIS as their chosen payment channel. It is generally acceptable to use an existing account from mobile banking or e-wallets.
Since QRIS is universal, the customers can pay using any of their mobile banking accounts or e-wallets with sufficient funds.
8. Continuous Development
QRIS is not a one-time solution after it’s released, but continuously grows and develops over the years. It was initially used for QR scan payment, but it can also be used for cross-border payment.
So, QRIS is revolutionizing QR scan-based payment systems, not only nationwide in Indonesia but also making it possible to carry out multinational payments. Starting in ASEAN countries like Thailand and Malaysia, QRIS is now projected to be available in other Asian countries like China and South Korea.
Security Tips for QRIS
Yes, QRIS offers numerous benefits to enhance daily transaction efficiency. But this does not mean that we can overlook the security aspect of this transaction process. It is essential for business owners to be aware of the fraud risk.
Some business owners may not have enough time to check their balance regularly to make sure that the payment from customers is successfully accepted. It creates a hole for scammers to create fake payment receipts as if they have already paid the invoices.
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